U.S. stock markets ended the week on a positive note, overcoming early losses triggered by geopolitical tensions and trade concerns. Wall Street indices rose sharply in choppy trading on Friday, despite an eventful day marked by a heated exchange between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy. According to a report from Reuters, oil prices fell, Treasury yields hit multi-month lows, and global stock markets reacted cautiously to new tariff announcements from Washington.
Stocks Rebound After Political Tensions
The trading session saw initial market declines following an on-camera dispute between Trump and Zelenskiy in the Oval Office over a potential Russia-Ukraine ceasefire agreement. The disagreement unsettled investors, leading to a brief selloff before markets rebounded later in the day.
“The market initially sold off because it was a heated and contentious conversation, which is not usually a good thing between two leaders of the world,” said Adam Sarhan, CEO of 50 Park Investments in New York. “That’s why the market sold off, but then cooler heads prevailed.”
By the close of trading, the S&P 500 had climbed 1.59% to 5,954.50 points, the Nasdaq gained 1.63% to 18,847.28 points, and the Dow Jones Industrial Average rose 1.39% to 43,840.91 points. Trading volume was notably high, with 17.5 billion shares changing hands, well above the 15.4 billion average of the previous 20 sessions.
Oil Prices and Tariffs Add to Market Uncertainty
Oil prices declined as concerns mounted over trade policies and supply disruptions. Brent crude futures, which expired on Friday, settled at $73.18 per barrel, down 1.16%, while U.S. West Texas Intermediate crude finished at $69.76 per barrel, down 0.84%.
Adding to market jitters, Trump announced new tariffs on imports from key trading partners. The 25% duties on goods from Canada and Mexico will take effect on March 4, earlier than the previously suggested date of April 2. Additionally, a 10% tariff on Chinese imports and a potential 25% levy on European Union shipments have heightened fears of an escalating global trade war.
Inflation Data and Treasury Yields Signal a Cooling Economy
Investors closely monitored economic data, particularly a Federal Reserve-tracked inflation report that suggested consumer spending had slowed. This data drove U.S. Treasury yields lower, reinforcing expectations that the Fed may extend its pause on interest rate hikes.
“The report indicates that inflation remains sticky,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “That means the pause will continue. And that means that the Fed may have a dilemma on its hands because the recent macro numbers are cooling and it shows signs of the economy cooling.”
The yield on the 10-year U.S. Treasury note fell by 6 basis points to 4.227%, while the 2-year note yield dropped 8.9 basis points to 3.991%, reflecting investor sentiment favoring safer assets.
Crypto and Commodities React to Market Shifts
The cryptocurrency market also experienced volatility, with Bitcoin falling 0.18% to $84,138.56, signaling a cooldown after its recent surge. The Trump administration’s approach to global trade and economic policy has played a role in shifting crypto trends, with earlier optimism fading amid uncertainty over future regulations.
In the commodities market, gold prices slipped as investors recalibrated their expectations. Spot gold fell 0.68% to $2,856.49 per ounce, while U.S. gold futures settled 1.6% lower at $2,848.50.
Global Market Reactions
While Wall Street managed to recover, European and Asian markets faced greater challenges. European stock futures fell, with the DAX and CAC40 down 0.6%, and Eurostoxx 50 futures dropping as much as 1.4%. In Asia, the MSCI Asia-Pacific Index outside Japan declined 2.45%, while Japan’s Nikkei tumbled 2.88% to 37,155.50 points.
Ukraine’s dollar bonds dipped slightly, but losses were limited despite the turbulence surrounding the White House meeting. The 2034-maturity bond fell just over one cent, last bid at 59.04 cents on the dollar, maintaining monthly gains.
