Trump and Powell speeches can deliver significant gut check to stock markets on records

The Dow Jones Industrial Average is new, ending the ninth high in 2019, but further market records may be linked to a series of speeches by the most important people in the stock market: President Trump and Jerome Powell.

Trump is scheduled to speak at the New York Economic Club at noon. Eastern Time, where he is expected to discuss a protracted tariff dispute between China and the United States that has entered into an immediate criminal case as both sides try to get a partial resolution.

Recent reports also suggest that the president will postpone the imposition of import duties for six months on European car imports. The deadline for the ruling is Wednesday, and it has already been postponed once before, in May.

Trade development has been a key driver of the markets in recent months, with progress towards a so-called Phase One agreement between Beijing and Washington that helped set the stage for

DJIA, + 0.04%

S&P 500 Index

SPX, -0.20%

and Nasdaq Composite Index

COMP, -0.13%

to resume a new attack on records.

Perhaps more than other US presidents, Trump has elevated his success to gains in the stock market and also to the health of the US economy:

However, uncertainty over the substance of a Sino-US agreement and conflicting reports on the roll back of tariffs as part of a resolution have led to a resolution some uncertainty in the markets in recent trade. Last week, the Chinese Department of Commerce said both parties had agreed to phase out recent tariffs as part of the elements toward the completion of a partial tariff agreement, but that report was soon followed by reports that professionals in the Trump administration disagreed. .

Read: Fed cut prices just in time, says award-winning interpreter

"The main reason for the break we have seen over the last 48 hours is a result of the conflicting signals given by the Chinese Ministry of Commerce, and President Trump on whether we can expect to see a delay or reversal of tariffs in a phase a deal agreed over the coming weeks, "wrote Michael Hewson, chief market analyst at CMC Markets UK in a Tuesday research note.

President Jerome Powell is scheduled to deliver congressional testimony about the state of the economy less than 24 hours after the Trump talks.

Powell on Wednesday at 11 a.m. Eastern Time will testify in front of the Joint Economic Committee, chaired by Senator Mike Lee, a Republican from Utah, Thursday, at 10 a.m., Powell will speak to the House Budget Committee.

The testimony would come after the Federal Open Market Committee last month lived teased its third subsequent interest rate cut at the same number of meetings in the interest-reducing body. The 10-year Treasury

TMUBMUSD10Y, + 0.36%

and the US dollar

DXY, + 0.17%

may be assets that prove to be the most sensitive. Returns can cause or deplete bond demand and expand the dollar.

Check out : Why would the Fed cut interest rates a third time in a row, even as stocks near records? Investors may soon find out

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