Donald Trump will appear on CNBC’s **Squawk Box** on Tuesday at 8 a.m. ET. The show focuses on pre-market financial news and market analysis. **Squawk Box** airs live on weekdays from 6 to 9 a.m. ET. It is designed for those preparing for the U.S. trading day and includes interviews with CEOs, policymakers, and other key figures.

Market Insights Before Opening

This show is essential for people looking to get insights before the markets open. It is a vital source of information for the financial community through mainstream media. With Trump’s appearance scheduled for this morning, we expect a very positive tone. This could lead to a quick boost in optimism in pre-market futures, likely pushing indices like the S&P 500 and Nasdaq higher. Such events usually bring about increased volatility, regardless of market direction. The CBOE Volatility Index, or VIX, has stayed around a calm 15, which is a significant drop from the spikes seen in late 2024. This might be a good time to buy call options on the VIX, anticipating that Trump’s interview will stir up market activity and shake off the summer lull. We can expect sectors like domestic energy and manufacturing to be in the spotlight. With WTI crude oil stabilizing around $82 per barrel, purchasing call options on energy ETFs such as XLE could be a smart move for the coming weeks. His comments may act as a catalyst for that sector to move beyond its recent range.

Managing Market Reactions

Reflecting on the years 2017 to 2021, we know these types of statements can lead to sharp but often short-lived rallies. An interview can significantly influence sentiment for several days, but eventually, the market will return to focusing on hard data. As a result, any long positions we take today should be actively managed. This situation presents a classic “buy the rumor, sell the news” opportunity. If the market gets a significant boost from this interview, it may become overbought. Buying some protective, out-of-the-money puts on the SPY with late August or September expiration could be an inexpensive way to hedge against a potential market reversal. Trump’s comments will likely emphasize economic policy and criticize the Federal Reserve. This is particularly relevant after the latest Consumer Price Index report from July showed core inflation stubbornly high at 3.1%. The tension between political rhetoric and economic reality will likely increase volatility in the weeks ahead. Create your live VT Markets account and start trading now.

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