The session on Wall Street was unstable due to the volatility generated by geopolitical tensions and business uncertainties. Despite this, the market managed to close in the green thanks to a recovery driven by speculation that Trump's comments might be more theatrical than indicative of a real change in policy.
These events underline the fragility of financial markets in the face of political and business decisions. The meeting between Trump and Zelensky of Ukraine ended without the signing of an expected economic agreement for the joint exploitation of minerals in Ukraine. This situation triggered an immediate reaction in the markets: Ukraine's international bonds experienced a significant drop.
The bond maturing in 2035 fell, reaching its lowest level in a month. The Trump administration has demonstrated a shift in U.S. foreign policy, displaying demands toward Ukraine and a more conciliatory attitude toward Russia. During a summit in London, Trump criticized Zelensky and praised Putin, resulting in different positions between Europe and the United States.
Global interconnectivity implies that the actions of political and business leaders can have broad and profound repercussions on the global economy. It is essential for the involved parties to consider the implications of their decisions to promote stability and confidence in the markets and avoid fluctuations that could affect investors and entire economies.
On the other hand, in the business realm, the cancellation of the agreement between Elon Musk and Carlos Slim had significant repercussions. Initially, both parties explored an alliance where América Móvil, owned by Slim, would resell the Starlink satellite internet service in Latin America. However, Slim decided to invest in the expansion of América Móvil's infrastructure instead of relying on SpaceX technology.
Slim's decision triggered a 28% drop in Tesla's shares, resulting in an approximate loss of $7.5 billion in Musk's personal fortune. These events also affected the S&P 500 index, showing how business decisions can significantly impact financial markets.
