Wed 21 Jan: After the Bell
Markets Rebound as Trump Softens Tone on Greenland and Tariffs. Your 5’ evening market wrap📄📈
ℹ️ Today’s performance tables & charts on the ‘Market Data’ post.
US equities rebounded sharply on Wednesday, with major indices gaining more than 1%, as markets leaned into the so-called “TACO trade” following a swift softening in Trump’s stance on Greenland and tariffs. Trump said the US and NATO had “formed the framework of a future deal” on Greenland and called off threatened tariffs on European nations, just days after his rhetoric had unsettled markets.
His more conciliatory tone was reinforced in his keynote address at the World Economic Forum in Davos, underscoring how sentiment is increasingly being driven by each headline, statement or social media post tied to geopolitics and trade.
“I will not be imposing the Tariffs that were scheduled to go into effect on February 1”, Trump posted.
The relief rally was broad-based, with all US sectors finishing higher, led by energy, materials and consumer discretionary.
In parallel, investors took comfort from developments around the Fed, as the Supreme Court appeared unlikely to support efforts to remove Governor Lisa Cook, with justices signalling concern over the implications for central bank independence.
Weather: → Forecasts point to a major winter storm later this week across the US, bringing snow, ice and freezing rain from Texas through the Midwest to the Northeast from Friday into the weekend. The system is expected to disrupt travel and power networks, with winter storm watches already issued across large areas. Front-month (Feb) contracts on US natural gas rallied 30% today and accumulated a 50% increase in two days. March contracts rose by 10% on Wednesday.
Earnings: → Today’s releases from a slate of established companies, including Charles Schwab, Johnson & Johnson, Travellers, and Kinder Morgan, largely met modest expectations and did not produce any major surprises. There were no pronounced misses that shifted consensus views, and with most stocks trading flat relative to broader index gains, the results did not significantly impact overall market sentiment.
