21.01.202619:50:04UTC+00US Stocks Sharply Higher as Greenland Tensions Cool

U.S. stocks experienced a notable upswing on Wednesday afternoon, recuperating a portion of the losses sustained in the previous session. This recovery followed President Trump's address at the World Economic Forum, where he ruled out military intervention as a means of acquiring Greenland. The major indices, including the S&P 500, Dow, and Nasdaq 100, surged by over 1.6% as the decrease in geopolitical tensions spurred a revival in both equities and Treasuries, reversing the pronounced risk-averse sentiment from earlier in the week. The technology sector spearheaded these gains, with companies like Intel, Micron, and Intuit posting increases between 7% and 10%. Other sectors also showed resilience as concerns about a sudden escalation in U.S.–Europe tensions diminished. Nonetheless, Trump reaffirmed his aim to pursue Greenland and retained the possibility of economic pressure on European allies, perpetuating trade uncertainties. In corporate news, Netflix saw a decline of around 3% following announcements of increased spending on content and costs related to its Warner Bros. Discovery partnership. Meanwhile, Johnson & Johnson's stock dropped slightly despite issuing more optimistic guidance.