Tuesday Afternoon Coffee - Markets Update - 19 Aug 2025 - Wall Street Slips, Europe Rises as Traders Weigh Ukraine Peace Prospects and Fed Outlook

The Trade Academy Team
Aug 19
3 min read

Markets Update: U.S. stocks declined Tuesday while European markets climbed, as investors weighed fresh diplomatic overtures on the Ukraine war and turned attention to the Federal Reserve’s Jackson Hole symposium later this week. Oil prices eased on speculation that progress in talks could eventually lift sanctions on Russian crude.

Global Markets Roundup: 19 Aug 2025

U.S. Equities Retreat, Europe Outperforms

The S&P 500 dropped 0.7% as losses in Nvidia and other AI leaders pressured the index, while the Nasdaq slid 1.5%. The Dow Jones Industrial Average edged 0.1% lower after briefly hitting a record high.

In Europe, the STOXX 600 advanced 0.7%, outpacing Asian shares, which slipped modestly. Gains were capped by profit-taking in defense stocks: the STOXX Europe Aerospace & Defense index fell 2.6% after a strong run.

Ukraine Talks in Focus

The moves followed White House discussions Monday between President Donald Trump and Ukrainian President Volodymyr Zelenskiy. Trump pledged U.S. support for Ukraine’s security under any peace deal but acknowledged Russian President Vladimir Putin “may not want to make a deal.”

On Tuesday, Trump reiterated hopes that Moscow would move toward ending the war but warned that refusal would create a “rough situation” for Putin.

Energy Eases on Supply Hopes

Crude prices dipped on speculation that progress in peace talks might eventually boost Russian supply. Brent crude settled 57 cents lower at $66.06 a barrel, while U.S. WTI slipped 77 cents to $62.65. Analysts noted the moves were modest, with oil markets unlikely to shift dramatically in the near term.

Spotlight on Jackson Hole

Markets are now awaiting the Fed’s annual Jackson Hole gathering from August 21–23, where Chair Jerome Powell is expected to outline the central bank’s policy stance amid stubborn inflation and slowing growth.

Futures markets imply at least two quarter-point rate cuts this year, though July’s hotter-than-expected producer prices have tempered expectations. Traders now price in 54 basis points of easing by year-end.

Trump has pressured the Fed for more aggressive cuts and has openly speculated about replacing Powell before his term ends next year.

Bonds Steady, Dollar Mixed

Treasury yields eased after recent sharp gains, with the 10-year yield down 3 basis points at 4.31%. German and British yields also slipped after testing multi-decade highs in recent weeks.

The dollar index DXY rose 0.15% to 98.27. The euro EURUSD edged down 0.12% to $1.1646, while the yen USDJPY strengthened 0.22% to 147.54 per dollar. Sterling slipped 0.16% to $1.348, and the Australian dollar fell 0.62% to $0.6451, its weakest since August 5. Gold was fractionally softer at $3,325 an ounce.

Cryptocurrencies, Commodities Slide

Bitcoin fell 2.88% to $113,112. Grain futures weakened, with Chicago wheat down 4½ cents to $5.20½ per bushel, touching record lows. Russia’s IKAR consultancy raised its 2025 wheat crop forecast to 85.5 million metric tons, reinforcing expectations of a bumper harvest.

Corn slipped 3½ cents to $4.03 a bushel, while soybeans dropped 9½ cents to $10.31¾, still near a six-week high.

Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team