Markets Yawn as Trump-Zelenskyy Security Pact Fails to Spark Ceasefire—Or Stock Movement

Geopolitical theater hits Wall Street with a thud.

Another high-stakes handshake, another non-event for traders glued to their Bloomberg terminals. The much-hyped Trump-Zelenskyy meeting delivered exactly what analysts predicted: a photo op, vague security promises, and precisely zero market-moving surprises.

Security Deal? Check. Ceasefire? crickets.

While DC pundits dissect the diplomatic nuances, investors clearly voted with their wallets—or rather, didn’t. Flatlining stocks suggest the ‘smart money’ saw this coming from miles away. After all, why price in actual progress when you can collect management fees waiting for it?

One hedge fund manager (who declined to be named while sipping a $28 cold brew) put it best: ‘Until tanks start rolling or treaties get signed, this is just background noise for the algo traders.’

Meanwhile, crypto markets barely blinked—because when you’re busy mooning, who has time for earthly geopolitics?

Zelenskyy wants Patriots, drones, and U.S. security guarantees

At the WHITE House, Zelenskyy gave Trump a detailed proposal during their meeting Monday. It includes a $100 billion plan to purchase American weapons, fully financed by European governments, in return for U.S. guarantees on Ukraine’s security once a peace deal is reached.

There’s also a $50 billion drone production plan, with joint manufacturing between U.S. and Ukrainian companies that have been developing drone tech since Russia’s 2022 full-scale invasion.

The document doesn’t say what weapons are being requested, but Ukraine has already said it wants 10 U.S.-made Patriot missile systems to defend major cities and power infrastructure. The drone deal’s split between investment and procurement isn’t detailed.

What’s clear is the entire pitch was tailored to Trump’s interest in domestic industry. When asked if the U.S. WOULD provide more military aid, Trump said, “We’re not giving anything. We’re selling weapons.”

Zelenskyy also used the document to push back on Trump’s new tone after the U.S. president met Vladimir Putin in Alaska just days earlier. Trump had originally supported a ceasefire, but changed course following that meeting, now favoring a full peace agreement with no preconditions. Zelenskyy’s message was the opposite, no progress without a ceasefire first.

Merz demands ceasefire while Kremlin mocks Trump

During the joint press appearance in Washington, German Chancellor Friedrich Merz told Trump directly:

“I can’t imagine that the next meeting would take place without a ceasefire. So let’s work on that and let’s try to put pressure on Russia because the credibility of these efforts we are undertaking today depends on at least a ceasefire.”

Ukraine echoed that view in the document and insisted that no deal should involve territorial concessions.

Kyiv is also demanding full financial compensation from Russia for damages from the war. The payment could come from the $300 billion in Russian sovereign assets that are currently frozen in Western jurisdictions. Any sanctions relief, according to Ukraine, must be tied to Russia complying with the future agreement and being willing to “play fair.”

Meanwhile, over in Moscow, Russian state media ran coverage that showed how little Putin’s circle thinks of Trump. Prominent Kremlin talk show host Vladimir Solovyov laughed off Trump’s threats and said Russia could “destroy the U.S. with nuclear weapons.” The clips were meant to show the Kremlin’s view that the U.S. president lacks serious leverage.

In any case, markets have now turned their focus to Federal Reserve Chair Jerome Powell’s annual speech at the central bank’s Jackson Hole summit. Fed funds futures are pricing in a roughly 83% likelihood that the central bank cuts rates at its next policy meeting in September, according to CME’s FedWatch tool.

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