The War Summit Drags On, but Stocks Keep Rising

Based on hopes of the Ukraine war ending – plus other factors – the major stock indexes are up an average of 2% in 1st half of August – normally a weak month.

Ukrainian President Volodymyr Zelenskyy and U.S. President Donald Trump (R) participate in a meeting in the Oval Office of the White House on Aug. 18, 2025. Mandel Ngan/AFP via Getty Images

Commentary

Nothing much happened last Friday in Alaska, when Vladimir Putin and President Trump cut their summit short, but they called it a “good start.” Meanwhile, Ukraine’s President, Volodymyr Zelensky, was furious for not being invited to Alaska. British Foreign Secretary David Lammy told Vice President J.D. Vance that a ceasefire must take place first before there are any territorial concessions. President Trump said he will not discuss changing any borders, but I suspect President Trump may agree to block Ukraine from joining NATO in exchange for a permanent ceasefire. Despite complaints emanating from Europe, the EU will likely reluctantly agree to most of the terms dictated by President Trump and Vladimir Putin.