Stocks Edge Back Up After Heated Exchange Between Trump and Zelensky

The stock market experienced a volatile day on Friday, March 2, 2025, as investors weighed the implications of a tense meeting between President Donald Trump and Ukrainian President Volodymyr Zelensky. Despite the uncertainty, the three main indexes finished the session higher thanks to a late-day buying spree. The Dow Jones Industrial Average closed up 1.4% at 43,840, the S&P 500 gained 1.6% to 5,954, and the Nasdaq Composite added 1.6% to 18,847. However, the indexes were lower on the month.

The upbeat inflation data released by the Bureau of Economic Analysis, which showed the Personal Consumption Expenditures Price Index (PCE) rising 0.3% from December to January and 2.5% over the year prior, initially boosted stocks. Core PCE, which excludes volatile food and energy prices, also rose 0.3% month over month and 2.6% year over year. Both annual increases were in line with economists' estimates and slower than the previous month's growth.

However, the contentious meeting between Trump and Zelensky pushed stocks into the red by the afternoon. The leaders' talks ended abruptly, leaving a potential rare earth mineral deal and military support for Ukraine in limbo. The Atlanta Fed's GDPNow indicator was also revised downward, raising concerns about a potential recession. Trump's threat to impose tariffs on European cars further added to the uncertainty.



Investors are now keeping a close eye on tariff headlines and the potential impact on global markets. Despite the geopolitical uncertainty, many analysts remain optimistic about the market's prospects for the year ahead. However, investors should remain vigilant and consider adjusting their portfolios to better navigate the current environment.

In conclusion, the stock market experienced a volatile day on Friday, March 2, 2025, as investors weighed the implications of a tense meeting between President Donald Trump and Ukrainian President Volodymyr Zelensky. Despite the uncertainty, the three main indexes finished the session higher thanks to a late-day buying spree. However, the indexes were lower on the month. Investors should remain vigilant and consider adjusting their portfolios to better navigate the current environment.