NEW YORK — The U.S. inventory market is steadying following its worst day since October, although some indicators of concern stay on Wall Road Wednesday about President Donald Trump’s need to take Greenland.
The S&P 500 rose 0.3% after Trump stated in a speech earlier than enterprise and authorities leaders in Europe that he wouldn’t use drive to take “the piece of ice.” The potential de-escalation in rhetoric, which had ramped up earlier with speak of tariffs crossing the Atlantic, helped the index recuperate a few of its 2.1% drop from the day earlier than and pull nearer to its all-time excessive set earlier this month.
The Dow Jones Industrial Common was up 188 factors, or 0.4%, as of 1:02 p.m. Jap time, and the Nasdaq composite was largely unchanged.
Treasury yields additionally eased within the bond market, a day after leaping in a possible sign of worries about greater inflation in the long run. They obtained assist from a chilled of bond yields in Japan, which surged earlier on considerations concerning the dimension of its authorities’s debt. The worth of the U.S. greenback additionally held steadier in opposition to the euro, Swiss franc and different currencies after sliding the day earlier than.
However some nerves appeared to stay available in the market, and the value of gold rose one other 1% and topped $4,800 per ounce for the primary time.
Trump himself acknowledged how his need for Greenland led to Tuesday’s drop within the U.S. inventory market, however he known as it “peanuts in comparison with what it’s gone up” within the first yr of his second time period and stated it could go up additional sooner or later. Whereas saying he wouldn’t use drive to take Greenland, he known as for “instant negotiations” for america to accumulate it from Denmark.
Trump has a historical past of creating large threats that ship monetary markets sliding, solely to tug again later and attain offers which are seen as much less unhealthy for the economic system or for inflation than his preliminary suggestion.
An individual walks in entrance of an digital inventory board displaying Japan’s Nikkei index at a securities agency Wednesday, Jan. 21, 2026, in Tokyo. Credit score: AP/Eugene Hoshiko
On one hand, the sample has given rise to the “TACO” acronym suggesting “Trump At all times Chickens Out” if monetary markets react strongly sufficient. On the opposite, has finally struck offers that outsiders could have earlier thought-about unlikely, ones that he is crowed about later. The obvious instance is Trump’s announcement of excessive tariffs on “Liberation Day,” which finally led to commerce offers with lots of the world’s main economies.
Serving to to steer the U.S. inventory market Wednesday was Halliburton, which rose 5% after the oil subject providers firm reported a stronger revenue for the most recent quarter than analysts anticipated.
United Airways climbed 2.1% after likewise reporting a greater revenue for the top of 2025 than anticipated. CEO Scott Kirby stated that the airline’s sturdy momentum in income is constant into 2026.
They helped offset a 4.6% drop for Netflix. The streamer sank regardless that it reported a stronger revenue than anticipated as buyers centered as a substitute on its slowing subscriber progress and its lower-than-expected forecast for revenue within the present quarter.
Individuals stand in entrance of an digital inventory board displaying Japan’s Nikkei index at a securities agency Wednesday, Jan. 21, 2026, in Tokyo. Credit score: AP/Eugene Hoshiko
Kraft Heinz sank 6% after Berkshire Hathaway warned buyers Tuesday that it could be keen on promoting its 325 million shares within the meals big that former CEO Warren Buffett helped create in 2015.
Berkshire took a $3.76 billion write-down on its Kraft-Heinz stake final summer season. Buffett stated final fall that he was upset in Kraft Heinz’ plan to separate the corporate in two, and Berkshire’s two representatives resigned from the Kraft board final spring.
Within the bond market, the yield on the 10-year Treasury eased to 4.27% from 4.30% late Tuesday. But it surely’s nonetheless above the 4.24% degree the place it was at on Friday.
That is earlier than Trump threatened to impose 10% tariffs on Denmark, Norway, Sweden, Germany, France, the UK, the Netherlands and Finland starting in February for opposing U.S. management of Greenland. That might be on high of a 15% tariff specified by a commerce settlement with the European Union that has but to be ratified.
In inventory markets overseas, indexes have been blended in largely modest actions throughout Europe and Asia.
Japan’s Nikkei 225 slipped 0.4%.
The nation’s prime minister, Sanae Takaichi, has known as a snap election for Feb. 8, which had despatched yields of long-term authorities bonds to document ranges. The expectation is that Takaichi, who’s capitalizing on sturdy public help scores, will lower taxes and increase spending and improve the federal government’s already heavy load of debt.
The yield on the 40-year Japanese authorities bond pulled again to 4.05% Wednesday, down from the 4.22% degree that it had surged to on Tuesday.
