4:15pm: Trump U-turns on tariffs
Stocks jumped sharply on Wednesday, with all the major indexes closing up around 1–2%, as investors cheered news that President Trump and NATO have laid the groundwork for a potential deal on Greenland.
The Dow Jones Industrial Average climbed 589 points, or 1.2%, to 49,077, while the S&P 500 rose 79 points, also 1.2%, to 6,876, pushing it into positive territory for the year. The Nasdaq gained 271 points, up 1.2%, closing at 23,225, and the Russell 2000 led the day with a 2% jump to 2,697.
The rally followed Trump’s announcement on Truth Social that he and NATO Secretary General Mark Rutte “have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region.” The president added that, as a result, “I will not be imposing the Tariffs that were scheduled to go into effect on February 1st,” reversing a prior threat that had rattled European markets.
Trump had already signaled a softer stance on Greenland in his Davos keynote, calling for “immediate negotiations” and ruling out the use of force to gain control of the territory. Investors responded positively to the clarity, sending equities higher across the board.
The combination of eased trade tensions and progress on Arctic negotiations helped push U.S. stocks higher, with the S&P 500 now back in the black for 2026.
3:45pm: Proactive news headlines
- G Mining Ventures Corp (TSX:GMIN, OTCQX:GMINF, FRA:W97) is expected to sustain solid margins and growth over the next two years despite slightly higher 2026 cost projections.
- C3 Metals Inc (TSX-V:CCCM, OTC:CUAUF) reported a high-grade copper-gold intercept at its Khaleesi project in Peru, highlighting promising drill results.
- TNR Gold Corp (TSX-V:TNR, FRA:TNW, OTC:TRRXF) is poised to become a revenue-generating royalty company, with rising lithium and copper prices driving near-term earnings.
- American Resources Corp (NASDAQ:AREC) launched the world’s first utility token for critical minerals, creating a blockchain-based chain of custody for neodymium oxide.
- Lisata Therapeutics Inc (NASDAQ:LSTA, FRA:8NE) agreed to a $4-per-share acquisition by Kuva Labs, with potential additional contingent payments for regulatory milestones.
2:50pm: Market movers
- United Airlines Holdings Inc (NASDAQ:UAL, XETRA:UAL1) exceeded Q4 expectations with $15.4 billion in revenue and $3.10 adjusted EPS, boosted by rising premium and loyalty revenues, and provided a strong 2026 outlook.
- Kraft Heinz Co (NASDAQ:KHC, XETRA:KHNZ) shares fell over 4% after Berkshire Hathaway filed paperwork signaling it could sell its entire 27.5% stake in the company.
- C3 Metals Inc (TSX-V:CCCM, OTC:CUAUF) reported a high-grade copper-gold intercept from its Khaleesi project in Peru, with 51.1 metres averaging 0.54% copper and 0.31 g/t gold.
- Halliburton Company (NYSE:HAL, XETRA:HAL) beat Q4 estimates with adjusted EPS of $0.69, driven by stronger-than-expected revenue and higher profitability.
- Johnson & Johnson (NYSE:JNJ) posted Q4 sales of $24.6 billion, surpassing expectations, and issued 2026 guidance slightly above forecasts.
- Lisata Therapeutics Inc (NASDAQ:LSTA, FRA:8NE) agreed to a $4-per-share cash acquisition by Kuva Labs, with potential additional payments linked to regulatory and licensing milestones.
2:00pm: Netflix spending concerns
Netflix shares fell 3.2% on Wednesday after the streaming giant reported a mixed set of fourth-quarter earnings, with investors weighing stronger-than-expected revenue guidance against softer profitability and engagement signals.
Jefferies said the results offered “something for the bulls and bears,” pointing to Netflix’s fiscal 2026 operating margin guidance as a key drag. Management forecast an operating margin of about 32% excluding M&A costs, below the Street’s 33% expectation, while second-half viewing hour growth of just 2% year-on-year also disappointed.
More positively, Jefferies highlighted that Netflix’s fiscal 2026 revenue outlook came in slightly ahead of expectations, with guidance implying 12%–14% growth. The brokerage noted that the midpoint of the revenue forecast was “just ahead of the Street,” adding that Netflix has historically been conservative with guidance and could ultimately exceed the high end of its range.
Netflix also reaffirmed confidence in its long-term ambitions, including previously leaked 2030 targets of $80 billion in revenue and 410 million subscribers, which Jefferies said suggests the company’s core growth model “remains strong.”
Still, concerns around rising content spending, slower engagement growth and lower-than-expected advertising revenue disclosure appeared to weigh on sentiment, contributing to the stock’s decline despite solid quarterly execution.
12:20pm: Tariffs, not military, primary risk
Markets rallied after President Donald Trump’s Davos speech, interpreting his dismissal of military action as a de-escalation. However, Nigel Green, CEO of deVere Group, cautions that the focus on tariffs signals a longer-term economic risk.
“Trump’s conviction was unmistakable,” Green said. “He repeatedly underscored tariffs as a tool that works. Markets should assume that belief translates into action over Greenland.”
Green noted that while equities reacted positively to the absence of immediate force, the president’s repeated praise for tariffs indicates a strategic reliance on trade pressure to achieve US. objectives. He warned that tariffs can be corrosive over time, driving inflation, squeezing corporate margins, disrupting supply chains, and affecting growth.
He stressed that investors may be underestimating the message from Davos: the removal of military risk does not remove economic risk. According to Green, tariffs remain “the central lever in Trump’s strategy, and investors ignore that at their own peril.”
11:20am: More positive atmosphere
“Traders have had to spend their afternoon listening to Donald Trump ramble on about his usual variety of topics, but the key nugget was his comment on ruling out military action to seize Greenland," said Chris Beauchamp, chief market analyst at IG.
"This has delivered the magic moment everyone was waiting for, and stocks duly rallied while the VIX slumped as fears of a total rupture of the Western alliance receded.
"While the EU parliament has suspended work on the US trade deal, the diminishing chance of a US-EU trade war has allowed a more positive atmosphere to prevail.”
10:35am: Stocks stabilize
Stocks are beginning to stabilize after Trump's more conciliatory tone at Davos.
"US stocks are still lower YTD, but a strong session today could change that," said Kathleen Brooks, research director at XTB.
"Greenland could still be an issue for financial markets, since Trump has said that he wants to gain control of Greenland and will start immediate negotiations to do so. However, today’s speech suggests that Nato is not under immediate threat, for now."
9.55am: Dow leads Wall Street higher at open
Wall Street has opened on the front foot following a more peacable speech from Donald Trump at Davos.
The Dow Jones started with a gain of 0.6%, the S&P 500 is up 0.5% and the Nasdaq 0.3%.
Energy company Chevron is topping the Dow, with sector peers also prominent among S&P risers.
President Trump said he wants immediate talks about buying Greenland but won’t use military might.
"I don’t have to use force. I don’t want to use force. I won’t use force," he said but said he wants “title and ownership” for the US because he doesn’t want to defend "license agreement" claims.
Market analyst Neil Wilson at Saxo said it was "quite a modest reaction to Trump's speech in Davos... but a touch more risk on".
Gold dropped a little as Trump ruled out the use of force.
"I guess the comments eased market concerns about the extreme tail risk that the US would invade Greenland, but they do not soothe concerns about the use of tariffs against several European nations and the threat of an escalating trade war between the EU and US.
"This relief rally may prove short-lived."
8am: Nasdaq, Dow and S&P expected to open slightly lower
US stocks futures were modestly lower as investors await comments from Donald Trump and his delegation at the World Economic Forum in Davos on Wednesday.
Dow Jones and S&P 500 futures were down 0.1%, while Nasdaq futures were 0.2% lower.
This followed a heavy beating for Wall Street on Tuesday, with the stock market posting its worst session since October as worries over President Trump's tariff threats over Greenland sent investors scrambling.
The Dow tumbled 871 points or 1.8% to 48,489, while the S&P fell 2.1% to 6,797 and the Nasdaq fared worst of all, plunging 2.4% to 22,954.
The declines wiped out all of the year-to-date gains for both the Nasdaq and the S&P 500.
SlateStone Wealth’s Kenny Polcari noted that the Dow, Russell 2000, and Equal-Weight S&P remain in positive territory in the year to date, which he called “a reminder that this is rotation, not collapse.”
The recent sell-off has been driven by “headline risk,” not a change in underlying fundamentals. “This is noise, not collapse,” he said.
Wednesday's session includes economic data such as the Red Book and housing figures, along with earnings from several S&P 500 companies, including Johnson & Johnson and Charles Schwab.
“I don’t expect any of them to drive the broader narrative at all… the focus is squarely on Davos and Trump’s speech,” Polcari added.
President Trump's trip to Davos was delayed by three hours, but reports suggest the speech was still scheduled for 2pm European time, with fresh photos showing the Marine One had picked up the delegation from the airport and was hustling on to the Swiss mountaintop resort.
Fawad Razaqzada at Forex.com said: "There is still some hope that Trump strikes a more conciliatory tone in Davos today. If he does, that would almost certainly lift sentiment across markets.
"But if he doubles down on his hawkish rhetoric, then this could start to spook investors in a more meaningful way than we’ve seen so far."