S&P Composite Index sees modest gains as U.S. markets stay mixed amid Trump Zelenskyy meeting

Canada’s main stock benchmark closed with modest gains on Monday, while U.S. markets moved in different directions as investors followed key political developments in Washington involving U.S., Ukrainian, and European leaders.

Kathryn Del Greco, senior investment adviser at TD Wealth, described the day as “fairly calm” despite the political backdrop. She noted that markets were watching the White House meeting between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy closely, given the ongoing war in Ukraine and the potential implications of any negotiations.

Political Focus and Market Sentiment

The discussions in Washington carried weight as Trump and Zelenskyy signaled hope for expanded talks that could eventually involve Russian President Vladimir Putin. The meeting followed Trump’s earlier conversation with Putin, where he suggested that future concessions from Ukraine could shape the path toward ending the war.

Del Greco explained that if the talks moved toward a peace arrangement, markets would likely welcome the outcome. However, she cautioned that it was too early to measure the likelihood of progress, which explains why investors maintained a cautious tone throughout the session.

Performance of Canadian and U.S. Indexes

The S&P Composite Index advanced 17.36 points, closing at 27,922.85. The movement reflected a restrained but steady performance as the market absorbed geopolitical developments.

In the United States, the Dow Jones Industrial Average fell 34.30 points to 44,911.82, while the S&P 500 ended the session flat at 6,449.15. The Nasdaq Composite posted a small gain of 6.80 points, finishing at 21,629.77.

Del Greco observed that investors have grown accustomed to managing heightened uncertainty without reacting sharply to every headline. “The market’s becoming quite adept at trying not to overreact in the short run to any headline stories,” she said.

Anticipation Ahead of Federal Reserve Commentary

Beyond geopolitics, attention is turning toward the U.S. Federal Reserve. Markets are awaiting comments from Chair Jerome Powell at the annual Jackson Hole symposium scheduled for Friday. His remarks on economic conditions and monetary policy could play a significant role in shaping sentiment.

Del Greco suggested that investors will closely parse Powell’s words, as his communication style often leaves room for interpretation. “The market will be hanging on every word he says for any indication,” she added.

Corporate Developments on the TSX

On the corporate front, Air Canada shares dropped nearly three per cent following the company’s announcement that it would suspend its third-quarter and full-year 2025 guidance. The decision came amid a continuing strike by flight attendants, which has persisted despite a back-to-work order issued by the Canada Industrial Relations Board.

Del Greco noted that the labour dispute could have longer-term implications depending on the duration of the strike and the scale of disruption to air travel. “If air travel is down, depending on to what degree and how long this lasts, it would have an impact on their earnings,” she said.