Trump to give State of the Union Address on Tuesday, featuring new tariff plan in Weekly Outlook

President Trump’s decision to increase the tariff rate to 15% effective February 24 has garnered attention across the globe. This move came in response to the U.S. Supreme Court’s ruling that the government’s previous tariffs were deemed excessive. The new executive order, set to come into effect on February 24, will see a 10% import tariff levied on goods from all countries and regions.

As the world anticipates Trump’s upcoming State of the Union address on February 24, discussions surrounding the administration’s policy priorities and economic outlook are at the forefront. The Supreme Court justices, who played a role in deeming the tariffs unlawful, will also be in attendance for this address.

The release of the U.S. January Producer Price Index (PPI) data on Friday is expected to shed light on inflation trends. Analysts predict a 0.3% month-over-month increase in PPI, with an annualized rise to 2.8%, slightly lower than December’s 3.0% increase. The market has fully priced in expectations of two 25-basis-point interest rate cuts later this year, although the timeline for the first cut may not be until July.

Hong Kong SAR’s eagerly awaited budget announcement on the 25th will be a crucial moment for the region. Financial Secretary Paul Chan’s recent blog post hinted at a surplus in the operating account due to strong stamp duty revenues. However, increased investment in public works projects may result in a deficit in the capital account for the fiscal year.

Earnings reports from key players like NVIDIA, Circle, HSBC Holdings, Hong Kong Exchange, CoreWeave, and Rocket Lab are set to make waves. NVIDIA, in particular, faces high expectations as analysts anticipate a 71% increase in fourth-quarter earnings per share with revenue soaring to $65.9 billion. The company’s CEO Jensen Huang’s remarks during the quarterly conference call will have wide-reaching implications for the artificial intelligence industry.

Other notable companies, including Hims & Hers Health, Stanchart, Tempus AI, Circle, HKEX, Baidu, CoreWeave, and Rocket Lab, are gearing up to announce their earnings as well. Apple Inc.’s annual shareholders meeting on February 24 will allow shareholders to vote on key issues like re-electing the board of directors and approving executive compensation.

The adjustment to the MSCI China Index on February 27 will see the inclusion of Four Hong Kong stocks while six Chinese stocks are being removed from the index. The quarterly adjustments by MSCI play a significant role in reshaping the investment landscape.

Looking ahead, the week promises to be filled with key events like economic data releases, financial announcements, and corporate earnings reports. The performance of companies like Hims & Hers Health, Tempus AI, Stanchart, Circle, NVIDIA, Salesforce, and others will be closely watched as investors navigate the ever-changing financial landscape.