President Joe Biden is set to deliver his annual State of the Union Address at 9 p.m. ET on Tuesday, January 20th in front of a newly fragmented Congress and to Americans confused by positive economic signs, a dismal earnings season and ongoing recession predictions.
The S&P 500 and Nasdaq Composite are up significantly this year, with the Dow and S&P 500 both jumping after Biden’s past State of the Union speeches. However, a negative message from Biden this year could send markets on a downward path.
Markets and the SOTU: Since former President Donald Trump took office, the stock market has seen gains on three out of four occasions following his speeches to Congress. However, when it comes to the State of the Union Address (SOTU), the story is a bit more mixed.
According to data from Bespoke Investment Group, the S&P 500 fell by a median of 0.5% the day after President Barack Obama’s SOTU addresses, while gaining a median 0.7% after former President George W. Bush’s speeches.
Janet Yellen, Treasury Secretary, stated the likelihood of a recession this year is low, citing the growth of jobs and the decreasing unemployment rate.
Friday’s jobs report showed that the US economy added a whopping 517,000 jobs in January, according to the Bureau of Labor Statistics. Janet Yellen, Chair of the Federal Reserve, said that this proves that the US doesn’t have a recession. The unemployment rate ticked down a tenth of a percentage point to 3.4% — the lowest jobless rate since May 1969.
Only a small proportion of our users will be impacted by this and we are working hard to restart the service as soon as possible. Our other methods of buying and selling crypto remain unaffected.
The suspension of Binance’s US operations comes as a major blow to the cryptocurrency industry, which is already reeling from the bankruptcy of FTX and the ongoing federal fraud investigation into that platform. Binance’s decision to halt its US operations is particularly awkward, given that the company briefly considered a bailout of FTX in November.