Key Takeaways
- President Trump pledged a $10 billion U.S. contribution to a newly formed "Board of Peace" while announcing that over $7 billion has already been raised for Gaza relief efforts.
- Iran has been issued a 10-day ultimatum to reach a "meaningful deal" regarding its nuclear program, with Trump warning that "bad things will happen" if an agreement is not reached.
- U.S. Pending Home Sales for January unexpectedly fell 0.8%, significantly missing the 2.0% growth estimate and signaling continued friction in the housing market.
- Hamas faces a demand for total disarmament; Trump stated the group will be "harshly met" if weapons are not surrendered, even as he claimed Gaza is no longer a "hotbed of radicalism."
- Bitcoin (BTC) slipped 2% to under $66,000, with analysts warning of a potential correction toward the $55,000 level amid thinning spot trading volumes.
Trump Outlines "Board of Peace" and Gaza Reconstruction
President Donald Trump announced a massive $10 billion U.S. commitment to the "Board of Peace," an initiative aimed at stabilizing the Middle East. During his remarks, Trump noted that Norway has agreed to host a major event for the Board, while Japan will host a separate aid fundraiser to bolster regional stability.
The President claimed that the Gaza relief effort has already secured more than $7 billion, with the United Nations currently working to raise an additional $2 billion. In a surprising cultural tie-in, Trump noted that FIFA is helping raise $75 million specifically for soccer projects in Gaza, emphasizing a commitment to a "properly governed" territory that is no longer a center for terror.
Ultimatum Issued to Iran
Turning to regional security, Trump signaled that a pivot point is approaching for Tehran, stating the U.S. will "find out about Iran in about 10 days." While he noted that "good talks" are currently taking place, he reiterated that Iran cannot be allowed to possess a nuclear weapon and must enter a "meaningful deal" immediately.
Trump's rhetoric regarding Hamas was equally firm, suggesting that while it "looks like" the group will relinquish their weapons, any failure to do so would be met with overwhelming force. Despite the tension, the President indicated he does not believe it will be necessary to send U.S. soldiers into active combat to maintain the peace, citing contributions of personnel from other nations.
U.S. Economic Data and Market Reaction
On the domestic front, fresh economic data painted a mixed picture of the U.S. recovery. Pending Home Sales dropped 0.8% in January, a sharp contrast to the 2.0% increase analysts had expected. This follows a revised 7.4% decline in the previous month, suggesting that high mortgage rates and limited inventory continue to weigh heavily on the real estate sector.
The U.S. Leading Index for December fell 0.2%, matching economist estimates. While this is a slight improvement over the previous 0.3% decline, the persistent negative readings suggest economic momentum remains fragile heading into the second quarter.
Crypto and Global Sentiment
In the digital asset space, Bitcoin (BTC) faced selling pressure, falling to $65,950. Market analysts pointed to the lowest spot trading volumes since 2023 as a sign of exhaustion, warning that a lack of ETF inflows could see the cryptocurrency test support at $55,000.
Meanwhile, in Europe, Eurozone Consumer Confidence for February printed at -12.2, slightly lower than the -12.0 expected by the market. The data reflects a cautious consumer base grappling with stagnant growth, even as global attention shifts toward the ambitious peace and reconstruction plans outlined by the U.S. administration.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.