Monday, March 3, 2025

Will markets continue to look over Trump-Zelenskyy clash?

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Global markets are set to open Monday with “surprisingly strong momentum,” as investors build on Friday’s late-session rally, looking over geopolitical tensions flaring in the Oval Office between Donald Trump and Volodymyr Zelenskyy.

This is the bullish prediction from Nigel Green, the CEO of global financial advisory giant deVere Group, as the Ukrainian President arrives in London for a summit with European leaders after an unprecedented clash with his US counterpart and his Vice President JD Vance in Washington on Friday.

Despite a volatile February and the spat, Wall Street ended the week with a powerful upswing, showcasing investor resilience.

The S&P 500 surged 1.59% to close at 5,954.50 on Friday, while the Dow Jones Industrial Average added 601 points, landing at 43,840.91.

The Nasdaq Composite climbed 1.63% to 18,847.28, rounding out a session that saw stocks rebound with force.

“The late-day buying momentum reflected a heavy tilt towards market-on-close orders, suggesting institutional confidence remains intact despite recent headwinds,” says Nigel Green.

“Investors are proving adept at looking beyond short-term political friction. The broader narrative remains one of strategic positioning—buying into weakness and capitalizing on technical setups that drive upward momentum.

“This Friday surge suggests institutional players and algorithmic trading models saw attractive entry points, reinforcing the notion that the bull market’s foundations remain solid.”

He continues: “The resilience displayed at the end of the week will be tested against the next wave of macroeconomic catalysts.

“But one thing is clear: for all the noise surrounding political theatrics, investors are keeping their focus on earnings growth, liquidity conditions, and the broader trajectory of global markets.”

This robust market performance comes amid a period of heightened geopolitical uncertainty, as the standoff between Washington and Kyiv has raised fresh concerns about international relations.

However, “investor sentiment appears unshaken”, with Friday’s strong rally suggesting that financial markets remain focused on fundamentals rather than political turbulence.

In recent weeks, macroeconomic data has pointed to persistent underlying strength in the US economy, adding to the bullish case for equities.

deVere suggests that institutional investors are taking advantage of these conditions, rotating into equities at strategic moments to capitalize on technical levels.

The deVere CEO concludes: “The bounce back on Friday reinforces the view that buy-the-dip strategies remain in play, driven by confidence in corporate earnings and monetary policy outlooks.”

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