Greenland Drama Subsides, Wall Street Turns Green
US stocks continued to rally on Thursday (January 22nd), extending the previous session's rally after geopolitical tensions eased and markets returned to risk-taking. The Dow Jones Industrial Average rose 306 points (+0.6%), the S&P 500 gained 0.5%, while the Nasdaq surged 0.9%—supported by tech giants like Nvidia, Microsoft, and MetaTrader. At the peak of the session, the Dow even rose 530 points (+1.1%) and the rally widened.
On a weekly basis, the Dow has now returned to a flat position, recouping losses incurred earlier in the week when markets panicked over Trump's new tariffs on Europe. However, the other two indexes have not fully recovered: the S&P 500 and Nasdaq are still trending down around 0.4% for the week—indicating that sentiment is improving, but not yet fully "recovered."
The main driver of the rally came from Trump's change in tone regarding Greenland. On Wednesday, Wall Street reacted sharply after Trump announced that new tariffs on imports from eight European countries, previously scheduled to take effect on February 1, would not be implemented. Trump also claimed there was a "framework" agreement regarding Greenland, which he said was reached after meeting with NATO Secretary General Mark Rutte.
In a post on Truth Social, Trump said he and Rutte had developed a "framework" for a future agreement on Greenland. Later, he reiterated to CNBC that the US had a "conceptual agreement" with the Arctic island. The market took the signal clearly: the risk of a trade war immediately dropped—and that was enough to get investors back to buying stocks.
Source: Newsmaker.id
