U.S. stock markets are anticipated to open on a positive note as diplomatic talks between U.S. and Russian officials commence in Saudi Arabia. These discussions aim to address the ongoing conflict between Russia and Ukraine, which has significant implications for global markets.

This diplomatic initiative has prompted European nations to reconsider their defense spending strategies. As a result, there may be a shift in focus towards enhancing military capabilities. In light of these developments, President Donald Trump has indicated plans to cut U.S. defense spending, which is adversely affecting American defense stocks while benefiting European defense firms.

Major market players are also expected to be impacted by these geopolitical changes. Investors are likely to respond to the shifting landscape, particularly affecting companies such as:

• Nvidia
• Intel
• SMCI

📎 Related coverage from: barrons.com