US Indices Get a Late-Day Boost on Month-End Flow Despite Rising Geopolitical Tension – US Market Wrap

Stocks recovered from another bout of volatility caused by geopolitical anxiety and a White House shouting match to rise at the end of a tumultuous February.

Equities recovered after a series of twists and turns. Plans to sign a critical minerals deal between the United States and Ukraine were scrapped after Donald Trump’s meeting with Volodymyr Zelenskiy devolved into a heated exchange. Trump later said Zelenskiy could return when he is ready for peace. An earlier rally was fuelled by inflation data, which bolstered bets on Federal Reserve rate cuts. Treasury two-year yields dropped below 4%.

Wall Street traders have witnessed an increase in equity swings as a result of a variety of risks, including an economic slowdown, geopolitics, a trade war, and valuations for artificial intelligence.

The S&P 500 increased by 1.6%. The yield on 10-year Treasuries fell six basis points to 4.20%. A dollar index rose 0.3%.

US Treasury Secretary Scott Bessent said Mexico has proposed matching Washington’s tariffs on China and urged Canada to do the same, pointing to a possible way to avoid levies on their own exports in the coming days.

According to a 22V Research survey, there is no clear consensus on whether the tariffs on Mexico and Canada will go into effect next week. The median guess was 50%, but the responses were fairly evenly distributed. Responses are evenly distributed above and below 50% odds.