Wall Street Rises Amid US-Russia Talks on a Possible Ukraine Peace Agreement

U.S. stock futures inched up on Tuesday as investors returned from a holiday-shortened trading week, closely monitoring diplomatic developments between the U.S. and Russia regarding the war in Ukraine.

As of 06:11 ET (11:11 GMT), Dow futures rose 54 points (0.1%), S&P 500 futures gained 21 points (0.3%), and Nasdaq 100 futures climbed 86 points (0.4%). Wall Street remained closed on Monday in observance of Presidents Day.

Global Markets Display Strength

European stocks remained near record highs on Friday, with gains in weapons firms leading the rally. European leaders have pledged to increase defense spending and strengthen their role in Ukraine’s security amid concerns about the US’s ability to deploy troops in a timely manner.

In Hong Kong, the Hang Seng Index surged to levels not seen in nearly three years as investors focused on a rare meeting between Chinese President Xi Jinping and major domestic private company executives.

Meanwhile, the Reserve Bank of Australia (RBA) cut real interest rates for the first time in four years. However, officials warned that with inflation still below optimal levels, further policy adjustments may be necessary in the future to promote price stability.

US-Russia Talks in Saudi Arabia

US and Russian officials are holding high-level talks in Saudi Arabia aimed at reaching a potential settlement for the war in Ukraine. This marks the first diplomatic engagement between Washington and Moscow since the conflict erupted in 2022.

The US delegation includes Secretary of State Marco Rubio, National Security Advisor Mike Waltz, and Middle East Envoy Steve Witkoff, representing President Donald Trump. On the Russian side, Foreign Minister Sergei Lavrov and a senior Kremlin foreign policy advisor are participating.

Notably absent from the discussions are Ukraine and its European allies. Kyiv officials insist that any peace agreement must include their participation. Speculation is growing that this week’s talks may pave the way for future high-level US-Russia negotiations.

In the past, tensions escalated when President Biden reaffirmed NATO’s stance on Ukraine in a congressional address. However, as European leaders gathered last May at La Belle Époque in Paris to discuss military spending, discussions also surfaced regarding the potential withdrawal of troops from certain regions.

Intel Shares Jump on Breakup Reports

In corporate news, Intel (INTC) surged in premarket trading following a Wall Street Journal report that semiconductor firms Broadcom (AVGO) and Taiwan Semiconductor Manufacturing Co. (TSMC) are exploring a potential breakup of Intel’s business.

Under the reported deal, Broadcom would acquire Intel’s chip design and marketing segment, while TSMC would take control of its manufacturing operations.

Intel shares have risen 18 percent year-to-date, with last week marking their strongest performance in 25 years, driven by optimism surrounding a potential partnership with TSMC.

Delta Plane Incident in Toronto

A Delta Air Lines (DAL) regional flight from Minneapolis-St. Paul flipped upon landing at Toronto Pearson Airport on Monday, injuring 18 of the 80 passengers on board.

Officials reported that three people sustained critical injuries, while 15 others were hospitalized. Some of the injured have since been discharged.

Delta’s stock traded slightly lower in premarket trading following the incident.

Oil Prices Climb After Russian Pipeline Attack

Crude oil prices extended their gains on Tuesday following a drone attack on a Russian oil pipeline that disrupted supply from Kazakhstan.

Russian officials blamed Ukrainian drones for the strike, which impacted a pipeline responsible for around 1 percent of global crude supply. The attack has raised concerns about potential disruptions in the global oil market.

However, expectations of a Ukraine peace deal have tempered oil price gains, as a resolution could ease sanctions on Russian exports, increasing supply.

As of 06:11 ET:

US West Texas Intermediate (WTI) crude gained 1.4 percent to $71.74 per barrel

Brent crude rose 0.7 percent to $75.75 per barrel