U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky had a tense meeting at the White House on Friday that seems to have derailed plans to sign an economic pact. The agreement was to make the U.S. a partner in developing Ukraine’s natural resources, which include minerals like lithium and titanium. However, the meeting turned sour after Trump and Vice President JD Vance accused Zelensky of being “disrespectful” and ungrateful. This caused quite a bit of volatility in the market as the SPDR S&P 500 ETF Trust (SPY) had given up its gains from earlier in the day, only to rally again.
The proposed deal would have established a “Reconstruction Investment Fund” to support Ukraine’s economic development and security. In return, Ukraine would contribute 50% of its revenues from natural resources to the fund, with the U.S. providing financial support. Nevertheless, it is now uncertain what will happen to the deal due to the strained relationship between the two leaders.
It is worth noting that the tension between Trump and Zelensky has existed for years, and a previous exchange saw Trump label Zelensky as a “dictator without elections,” which, interestingly, was a remark that he didn’t extend to Vladimir Putin. Zelensky then fired back by accusing Trump of being misled by Russian propaganda.
Is SPY a Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on the SPDR S&P 500 ETF Trust based on 407 Buys, 93 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After an 18% rally in its share price over the past year, the average SPY price target of $701.98 per share implies 19.4% upside potential.
