Wall Street likely to shrug off Obama as investors wait for budget deal
Published on Feb 13, 2013 2:05 PM
NEW YORK (Reuters) - The US stock market is unlikely to take much direction from Tuesday's State of the Union, although President Barack Obama was less combative in his tone than some on Wall Street expected.
Mr Obama's speech provided little in the way of guidance as to whether the White House and Congress will come to a deal to head off large spending cuts that are set to come into effect as of March.
The broader market has not been overly concerned about the potential effect of US$85 billion (S$105 billion) in automatic spending cuts that would hit the defence sector hard.
The president presented a number of new initiatives - including a proposal to raise the national minimum wage to US$9 an hour - but the difficult path many proposals face in getting through Congress means reaction from individual shares will likely be muted.
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