Trump-Zelenskiy clash adds to market nervousness

(Reuters) – Ukrainian president Volodymyr Zelenskiy left the White House early Friday after a controversial oval office meeting with President Donald Trump, said a White House official.

Zelenskiy is “not ready for peace if America is involved,” American president Donald Trump said on Friday in an article on Truth Social, following a controversial meeting between the managers of the Oval Office.

“I determined that President Zelenskyy is not ready for peace if America is involved, because he considers that our involvement gives him a great advantage in negotiations. I do not want more, I want peace. He missed in the United States of America in his darling oval office. He can come back when he is ready for peace,” said Trump.

The S&P 500 briefly plunged and then joined 0.4%. The euro extended a slight loss and was reduced by 0.27% to 1.0369.

Comments:

Carol Schleif, chief market strategist, BMO Private Wealth, Minneapolis, Minnesota

“The markets will continue to be more focused on pricing policy – how much, which, when – and what this implies for commercial activity and expenses and confidence of consumers. Most American investors (and voters) pay attention to what brings the pocket book closer to their homes and Russia / Ukraine has only been one of the many global considerations on the edges for a very long time. »»

“On the other hand, European markets could be more impacted since it seems more and more clear than the defense of Ukraine and / or the holding of Russia will be left to them”

Adam Sarhan, Managing Director, 50 Park Investments, New York

“The market initially sold because it was a heated and controversial conversation, which is generally not a good thing between two world leaders, especially when it has to do with a war. The news, if you watched it live, it was quite worrying. It was heated, and Zelenskiy is considered an ally of the United States. Trump offers him an agreement. Mexico.”

Front Marshall, senior managing director, Front Barnett, a merisow company, in Chicago

“As an investor, you have to wait and see what is the result, rather jump to a conclusion. Trump wants to desperately do something, Zelenskiy wants to do something, and Putin does it too. The question is: where will it settle? We don’t know. The reaction on the market was predictable, when people started to see this show, the market sold. Now that Zelenskiy has left WH, it’s settled. »»

“On Trump’s pivot on Ukraine’s policy:” It has created a lot of uncertainty, on this issue. And uncertainty is something that markets hate. They (investors) try to see, without much information, where things go. “”

Spencer Hakimian, CEO, Tolou Capital Management, New York

“It is terrible and very risky, but it is very optimistic for European defense manufacturers, because they will have to arm via national producers. We bought these actions in January for the first time.”

Rick Meckler, partner, Cherry Lane Investments, New Vernon, New Jersey

“I do not think that it hurt the market so much because of what it had to say, but the unconventional nature raised the question of investors of the way in which there is so much in this government. A lack of predictability and the more traditional approaches of diplomacy.”

David Wagner, head of shares at Aptus Capital Advisors in Fairhope, Alabama

“The S&P 500 begins to see its first decline of 2025. On the surface, the S&P is -5% reduction on the summits, but there have been dramatic movements under the hood of the index. The point here is: a large part of the movement seems to be motivated by the “positioning of the takes place” in relation to “fundamental distress”. And watching the season of the last quarter results helps us to validate this thought, because the spread between the MAG 7 and the 493 remaining incomes have seen its closest gap since the first quarter of 2023.

“But now that the profits season is essentially finished now that NVDA is behind us, I expected a lot of Washington DC policies to dictate a certain short -term volatility on the market.”

Jack McIntyre, portfolio director, Brandywine Global, Philadelphia

“It’s disturbing, but perhaps it is part of the way of negotiating Trump … A great driving force in markets is now uncertainty at many different levels, and it is only another part of this. It seemed that we are heading for progress in a matter of peace or a cease-fire between Russia and Ukraine and perhaps it should not be doing dust.”

(Compiled by the Global Finance & Markets News team)