Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed slightly in the red as the market digests updates from a meeting between President Trump and Ukrainian President Volodymyr Zelenskyy.
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Zelenskyy said he had a “very good” conversation with Trump and requested elevated security measures for Ukraine, which Trump agreed to. Following the meeting, Trump reiterated that he would call Putin and try to organize a trilateral meeting.
“I’m optimistic that collectively, we can reach an agreement that would deter any future aggression against Ukraine,” Trump said, adding that Ukraine may need to cede land to Russia in order to end the war. That likely won’t sit well with Zelenskyy, who earlier explained that Ukraine’s constitution prohibits giving up or trading land.
Now, a meeting between Trump, Zelenskyy, and several key European leaders, including European Commission President Ursula von der Leyen and French President Emmanuel Macron, is currently underway behind closed doors.
Meanwhile, the Trump administration is considering buying a 10% stake in Intel (INTC) worth $10.5 billion, according to Bloomberg. Intel is set to receive $10.9 billion through the Chips Act, which could be used by the government to purchase a stake, potentially making it the company’s largest shareholder. The company has received $2.2 billion as of January and is eligible to receive more upon the completion of project milestones.
Both Trump and Federal Housing Finance Agency (FHFA) Director Bill Pulte have called on the Fed to lower interest rates. Now, another organization is joining the cause. On Monday, the National Association of Home Builders (NAHB) reported that the NAHB/Wells Fargo Housing Market Index (HMI) slipped to 32, the lowest reading since December 2022. The HMI measures sentiment among homebuilders.
“Given a slowing housing market and other recent economic data, the Fed’s monetary policy committee should return to lowering the federal funds rate, which will reduce financing costs for housing construction and indirectly help mortgage interest rates,” said NAHB Chief Economist Robert Dietz.
Finally, Wells Fargo joined a cohort of Wall Street firms turning bullish. The bank lifted its year-end S&P 500 (SPX) price target to between 6,300 and 6,500, up from its prior estimate of between 5,900 and 6,100. Wells Fargo cited the delayed implementation of tariffs, tax cuts from the One Big Beautiful Bill, and lower regulatory risk as reasons for its higher price target.
The S&P 500 (SPX) closed with a 0.01% loss while the Nasdaq 100 (NDX) inched higher by less than 0.01%.
