**U.S. Market:**
Following the failed meeting between Trump and Zelensky, the likelihood of an agreement between Ukraine and the U.S. decreased. Stocks briefly dipped into negative territory but rebounded quickly toward the end of the session, ultimately closing higher. The Nasdaq index rose by 1.6%, while the Dow Jones Industrial Average and the S&P 500 both gained 1.4%. The U.S. 10-year Treasury yield fell by 6 basis points to 4.20%. Oil prices declined by 1.2% to $73.15 per barrel.
**Asian Stock Markets:**
Markets experienced a significant sell-off ahead of the weekend, as tariff concerns weighed on sentiment. The Hang Seng index dropped 3.3%, the Nikkei index fell 2.9%, and the Shenzhen Component index declined 2.0%. The Australian ASX index slid 1.2%, with the information technology, materials, and consumer staples sectors all falling more than 2.0%.
**European Stock Markets:**
European markets opened weak, with the Stoxx, CAC, and DAX indices all declining. However, they rebounded towards the end of the session, with the DAX index erasing its losses to close flat, the CAC index rising by 0.1%, and the FTSE index closing up 0.6%.
**Foreign Exchange Market:**
The U.S. dollar strengthened across the board, especially after the failed meeting between Trump and Zelensky. The AUD/USD touched a low of 0.6192 on Friday before rebounding to close around 0.6210. The NZD/USD fell to 0.5587. The EUR/USD dropped to 1.0360. The USD/JPY rose by 0.4% to 150.69, nearing but not breaking the 151.00 level.
**Economic Data:**
– **U.S. Core PCE (January):** Month-over-month growth of 0.3%, year-over-year growth of 2.6%, both in line with expectations.
– **Chicago PMI (February):** Came in at 45.5, higher than the previous reading of 39.5 and above the expected 40.8.
– Market reaction to the data was relatively muted, with the euro and pound briefly strengthening against the dollar.
**Key News:**
– The **Trump-Zelensky meeting at the White House failed**. Trump stated afterward that Zelensky was “not ready for peace” and did not show respect for the U.S. or the Oval Office.
– Trump **confirmed he would not sign a minerals agreement**.
– Following this news, markets experienced significant volatility: the U.S. dollar strengthened broadly, and U.S. stocks briefly fell before staging a sharp rebound.
**Federal Reserve:**
Fed official **Hammack** emphasized the importance of a **stable balance sheet reduction**, expressed **no inclination toward rate hikes**, and **reaffirmed confidence in anchored inflation expectations** for the future.
