Breitbart Business Digest: Markets Rally as Trump Stands Firm, Zelensky Falters, and ‘Fortress North America’ Takes Shape

Stocks Soar in Late Friday Rally Following Zelensky’s White House Fiasco

Wall Street ended the week on a high note, shaking off geopolitical tensions after President Donald Trump’s tense White House showdown with Ukrainian President Volodymyr Zelensky.

Stocks wobbled early as Trump warned Zelensky he was “gambling with World War III,” but markets shook off the uncertainty and surged into the close.

The S&P 500 added 1.59 percent, while the Dow Jones Industrial Average jumped 601.41 points, or 1.39 percent. The Nasdaq Composite climbed 1.63 percent, marking a strong rebound from earlier losses.

Early in the day, stocks climbed before dipping into the red when Zelensky balked during a White House meeting when Trump reiterated the U.S. position that it would seek a negotiated settlement to Ukraine’s war with Russia. Zelensky, seeking stronger U.S. security guarantees, walked away empty-handed—leaving behind a mineral-rights deal that had been viewed as key to securing continued American support and deepening ties with the U.S. economy.

Markets dipped briefly but rebounded decisively, with investors signaling confidence in Trump’s negotiating approach. The stock rally suggests Wall Street views Trump’s America First foreign policy as a source of stability rather than chaos. Investors have learned that Trump negotiates hard and that prioritizing U.S. interests over foreign entanglements creates more certainty, not less.

‘Fortress North America’: Mexico and Canada Weigh Tariff Moves

Meanwhile, a major trade realignment is taking shape. Treasury Secretary Scott Bessent revealed that Mexico has proposed matching U.S. tariffs on China and urged Canada to do the same, signaling a potential North American economic fortress against Beijing’s cheap exports.

“I think it would be a nice gesture if the Canadians did it also, so in a way we could have ‘Fortress North America’ from the flood of Chinese imports,” Bessent said in an interview with Bloomberg Television.

Mexican President Claudia Sheinbaum’s administration has been actively negotiating with the Trump administration to raise tariffs on Chinese goods and shift more of its trade toward the U.S. Mexico is particularly focused on Chinese-built cars and auto parts, which have flooded its market in recent years.

Trump has long linked trade policy to national security, arguing that Beijing has used Mexico as a backdoor to circumvent U.S. tariffs and undercut American industries. The administration has threatened 25 percent tariffs on Mexican and Canadian goods starting March 4 unless they step up cooperation.

Canada, for its part, has already imposed tariffs on Chinese electric vehicles, steel, and aluminum—but has yet to enact its second wave of tariffs on critical minerals, semiconductors, and solar panels. That could now become a bargaining chip in discussions with Trump.

Inflation and the Fed: No Easy Rate Cuts

On the economic front, core inflation rose 2.6 percent year-over-year in January, moderating slightly but still above the Federal Reserve’s two percent target. This diminishes the likelihood of near-term rate cuts, despite Wall Street’s persistent hopes for easier monetary policy.

Meanwhile, global investors piled into government bonds, pushing down yields. Some see this as a sign of caution about the health of the U.S. economy, while others believe it reflects confidence in the U.S. economy’s strength amid trade realignments and shifting geopolitical strategies.

The Market Loves Trump Standing Strong

Friday’s market rally sends a clear message: investors aren’t rattled by Trump’s tough stance on Ukraine, China, or trade. If anything, the stock market appears reassured by his insistence that Washington won’t be pressured into bad deals or endless foreign commitments.

Zelensky’s diplomatic miscalculation cost him leverage, while Trump’s refusal to be strong-armed reinforced his position. Meanwhile, Mexico’s willingness to align with U.S. tariffs signals a major shift in North American trade policy, further isolating Beijing’s influence in the Western Hemisphere.

Markets trust what they see: a White House that puts America first, a stronger North American trade alliance taking shape, and a president who isn’t afraid to call the shots.

Breitbart