Global stocks traded near record highs on Friday as U.S. President Donald Trump and Russian President Vladimir Putin held high-stakes talks in Alaska over Ukraine. Markets remained cautious, balancing strong earnings momentum against ongoing geopolitical risks and expectations for a Federal Reserve rate cut.
Wall Street performance
The Dow Jones Industrial Average rose 0.08%, hitting a fresh intra-day record, while the S&P 500 fell 0.29% and the Nasdaq dropped 0.40%. Analysts highlighted that earnings and margins remain the key market drivers, despite renewed inflation concerns. U.S. retail sales rose 0.5% in July, reinforcing consumer strength even as producer price data fueled worries about persistent inflation.
Global markets and currencies
European stocks touched a five-month high before pulling back, with the STOXX 600 ending flat. The MSCI All Country World Index consolidated near its record. In currency markets, the dollar weakened against the yen, Swiss franc and euro, with the dollar index down 0.34%. Japanese GDP growth beat forecasts, expanding at a 1.0% annualized pace in Q2.
Geopolitical backdrop
The Alaska meeting between Trump and Putin could determine progress toward a ceasefire in Ukraine, the deadliest conflict in Europe since World War Two. Investors remain cautious, as Ukraine and European leaders are not directly involved in the talks. Analysts warned that commodities such as oil may react if any breakthrough emerges.
Commodities outlook
U.S. Treasury yields edged higher, reflecting shifting expectations on Fed policy. Brent crude settled 1.5% lower at $66.85 a barrel, while U.S. crude dropped 1.8% to $62.80. Gold held steady, with spot prices at $3,338.65 an ounce and U.S. futures near $3,382.60.
Keywords: global stocks, Wall Street, Dow Jones, S&P 500, Nasdaq, Trump, Putin, Ukraine, Federal Reserve, inflation
