US Stocks Drift into the Weekend – Nasdaq Off 0.4%
US stock markets drifted lower on the whole on Friday as investors looked ahead to geopolitical updates from the summit between Presidents Trump and Putin. The summit produced little in the way of detail for markets, although it was hailed as productive by both parties. Traders will now look ahead to today’s meeting between Trump and Ukrainian President Zelensky for further clarity. The Dow edged higher, gaining 0.08% to 44,946, the S&P fell 0.29% to 6,449, and the Nasdaq dropped 0.4% to 21,622. The dollar fell again against the majors, with the DXY down 0.42% to 97.84, while Treasury yields pushed higher — the 2-year adding 1.8 basis points to move up to 3.751% and the 10-year up 3.1 basis points to 4.316%. Oil prices fell, with Brent down 1.48% to $65.85 and WTI down 1.81% to $62.80, whilst gold traded in a relatively tight range, closing the day up just 0.02% at $3,336.19 an ounce.
Risk High Today on Political Updates
Investor concern has increased over the weekend after President Trump met President Putin to discuss a potential ceasefire in the Russian-Ukrainian conflict. Although both sides have called the talks productive, very few details have come through, and that has led to more concerns for investors ahead of today’s meeting in Washington between Trump and Ukrainian President Zelensky, along with other European representatives. Many fear that the path ahead will not be a smooth one, with Ukraine probably being asked to give up land to Russia in order to facilitate a ceasefire — something Zelensky may not agree to, especially with backing from European allies. Depending on the talks, and indeed the information that comes from them, many traders feel that the risk for markets is a sharp decrease in sentiment in the next few sessions, which could trigger sharp moves in haven trades.
All Eyes on Washington Today
There is very little on the macroeconomic calendar today; however, traders are expecting markets to remain lively as investors focus on updates from the meeting between Trump and Putin on Friday and today’s meeting in Washington, D.C. Markets have been steady this morning on the Asian open, with little detail from the US-Russia summit to move products, and traders will be closely monitoring newswires as the day progresses for any fresh updates on the situation. The London and New York sessions have no tier-1 data due out today, although the EU’s trade balance (exp. 18.1 bio) will provide some potential for moves in the euro, and Canadian housing data (exp. +264k) may see a bit of a reaction in the loonie. The real focus, however, will be on those geopolitical updates on a potential ceasefire in Ukraine and the details around it.
