On February 28, 2025, stocks experienced slight gains amid rising geopolitical tensions as President Donald Trump and Ukraine President Volodymyr Zelenskyy clashed during a meeting at the White House. The S&P 500 rose by 0.2%, while the Dow Jones Industrial Average increased by 102 points, reflecting investor concerns about potential impacts on global markets.
- Traders active on NYSE floor.
- Stocks rose slightly amid geopolitical tensions.
- Trump-Zelenskyy clash raised market concerns.
- Cboe Volatility Index hit highest level since January.
- Nvidia and Palantir experienced significant declines.
- Economic forecasts show potential GDP contraction.
The meeting between Trump and Zelenskyy was marked by tension as discussions focused on a potential mineral rights agreement for Ukraine that could influence U.S.-Ukraine relations amid the ongoing conflict with Russia. Trump’s remarks included a warning to Zelenskyy about the risks of not reaching an agreement, stating, “You either make a deal or we’re out.” This interaction raised fears among investors regarding future U.S. involvement in the conflict.
As a result of this confrontation, the Cboe Volatility Index climbed by 4.8% to reach its highest level since January, indicating increased market anxiety. Major technology stocks faced declines; Nvidia dropped significantly following disappointing earnings reports earlier in the week, contributing to an overall negative sentiment in tech shares.
- S&P 500: +0.2%
- Dow Jones: +102 points
- Nvidia: -11% for the week
- Palantir: -20% for the week
The Atlanta Fed’s GDP Now measure indicated a projected decline of first-quarter output by 1.5%. With these developments leading to heightened volatility in markets, analysts suggest that any further escalation in geopolitical tensions will likely continue impacting stock performance negatively.
The current state of the stock market reflects significant uncertainty driven by geopolitical events and corporate earnings reports. Investors are advised to remain cautious as conditions evolve rapidly amidst ongoing discussions between key international leaders.
