Thursday, January 22, 2026-Global financial markets staged a broad rebound on Wednesday after President Donald Trump clarified his position on Greenland, explicitly ruling out the use of military force to acquire or control the Arctic territory.
The announcement, made at the World Economic Forum in Davos, helped ease a wave of investor anxiety that had triggered a sharp sell-off in stocks the previous day. Major U.S. indexes ended significantly higher, with the S&P 500 recording its strongest single-day percentage gain in weeks and the Dow Jones Industrial Average climbing sharply as traders reacted positively to the de-escalation in geopolitical risk.
Investors had sold off earlier in the week amid fears that Trump’s aggressive remarks about Greenland, including tariff threats and hints at forceful measures, could spark broader geopolitical instability and trade tensions with Europe. Those concerns had lifted safe-haven demand for assets like gold and caused U.S. Treasury yields to rise. The president’s pivot toward negotiations and his assurance that force would not be used helped calm the markets and restore confidence among equity investors, leading to rebounds across major sectors.
The rally wasn’t limited to the United States markets around the world also reacted positively as the Greenland controversy eased. Traders cited the de-escalation as a major relief catalyst, though many noted that uncertainty around trade policies and broader geopolitical negotiations remains. Despite the bounce back in stocks and steadier bond markets, some analysts warn that market volatility could persist if tensions over tariffs or territorial ambitions resurface.
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