Wall St rally fades as European shares close at record high; crude surges on supply worries

NEW YORK, Feb 18 (Reuters) – U.S. stocks chased their European counterparts higher on Wednesday, but lost some momentum as the session progressed, while ongoing geopolitical strife helped prompt a rebound in crude and gold prices.

Reports that European Central Bank President Christine Lagarde would leave her post early, and the minutes from the Federal Reserve’s most recent policy meeting kept central banks on center stage.

I will go into more detail on today’s market moves below. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.

I’d love to hear from you, so please reach out to me with comments at [email protected].

 

  Today’s Key Market Moves 

* STOCKS: Madison Square Garden Sports surged to recordhighs on potential Knicks spin-off, Garmin and MGM Resorts wereamong the top performers, all “magnificent seven” stocks gained,with Amazon.com leading the pack * SECTORS/SHARES: Energy, consumer discretionary, techand transports all outperformed the broader market * FX: Euro weakens over report of Lagarde’s departurefrom the ECB, dollar gains against a basket of world currencies * BONDS: U.S. Treasury yields gain after solid datasuggests Fed will stand pat on rates, for now * COMMODITIES/METALS: Simmering geopolitical tensionssent crude prices surging on supply concerns, gold rising onrenewed safe-haven demand

Today’s Key Reads

1. Meta Platforms CEO Zuckerberg faced questioning over theeffects of Instagram on the mental health of young users 2. Satellite images show Iran repairing and fortifyingsensitive military sites amid mounting U.S.-Iran tensions 3. Artificial Intelligence boom still fueling U.S.business investment in equipment; housing market still weak 4. Germany will pursue “strategic partnership” with Chinain response to U.S. tariffs 5. The Vatican has announced that it will not participate inU.S. President Donald Trump’s “Board of Peace,” adding thatefforts to handle crisis situations should be managed by theUnited Nations

Today’s Talking Points

 

* Christine Lagarde intends to step down as ECB president

The Financial Times reported Lagarde would leave her post prior to next year’s French election in order to give French leader Emmanuel Macron a say in picking her successor. News of Lagarde’s possible early departure prompted speculation regarding her potential successor.

 

* U.S.-mediated peace talks between Russia and Ukraine end abruptly

After two days of negotiations, talks ground to a stop. Ukrainian President Volodymyr Zelenskiy called the talks “difficult” and accused Russia of deliberately delaying progress toward a deal to end the war.

 

* U.S. business spending ended 2025 on a strong note

New orders for U.S.-manufactured core capital goods – which exclude aircraft and defense items, and are considered a barometer of U.S. corporate capex plans – increased more than expected in December and shipments of these products surged, pointing to solid business spending and economic growth in the fourth quarter.

 

* Fed minutes reveal policymakers divided on the central bank’s next move

Minutes from the Fed’s most recent monetary policy meeting revealed officials were in near-unanimous agreement to hold interest rates steady, but remained split over their next move.     

 

What could move markets tomorrow?

* U.S. international trade balance (December) * U.S. jobless claims (last week)    * U.S. pending home sales (January) * Euro zone consumer confidence (February) * Euro zone construction output (December) * Canada trade balance (December) * A spate of U.S. Federal Reserve officials are due tospeak, including Atlanta Fed President Raphael Bostic, Fed ViceChair for Supervision Michelle Bowman, Minneapolis Fed PresidentNeel Kashkari, and Chicago Fed President Austan Goolsbee

 

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

(By Stephen Culp; Editing by Deepa Babington)