Market Reactions - The stock market experienced significant volatility due to geopolitical tensions, particularly following President Trump's tariff threats against European nations over Greenland, leading to a drop in major indices [2][3]. - On January 20, 2026, the Dow Jones Industrial Average fell by 877 points (1.8%), the S&P 500 dropped by 2.1%, and the Nasdaq Composite decreased by 2.4% [3]. - Following a "framework deal" announcement on January 21-22, 2026, the S&P 500 rebounded by 0.5%, the Dow Jones increased by 0.6% to 0.7%, and the Nasdaq rose by 0.9% [5]. Company Performance - Major tech companies faced declines, with Nvidia dropping between 3.6% and 4.4%, Amazon's shares falling by 2.9% to 3.7%, and Tesla decreasing by over 3% [4]. - Investors shifted towards safe-haven assets, resulting in a surge in gold prices amid market uncertainty [4]. Tariff Threats and Trade Relations - President Trump issued a new round of tariff threats against Canada on January 24, 2026, in response to Canada's trade agreement with China, which included a lowered tariff rate on Chinese electric vehicles [7][8]. - The proposed 100% tariff on Canadian goods entering the U.S. was met with pushback from Canadian officials, emphasizing that Canada had no intention of pursuing a free trade deal with China [9]. Economic Policy Insights - Treasury Secretary Scott Bessent downplayed market concerns regarding the Greenland tariff threats, suggesting that the initial panic was exaggerated and advocating for a more measured approach to international trade [11]. - Bessent's views sometimes diverged from President Trump's, particularly regarding the strength of the dollar, indicating internal dynamics within the administration that could influence economic policy [12]. Market Sentiment and Investor Behavior - The market's reaction to presidential announcements has led to the emergence of the acronym "TACO," reflecting the expectation that aggressive threats may precede strategic retreats [6]. - Investors have adapted to the unpredictable nature of the market, finding opportunities amidst the volatility created by geopolitical events and presidential rhetoric [13].

NEW YORK (AP) — U.S. stocks rose again Thursday and regained more of their losses for the week following the latest walk back by President Donald Trump from tariffs he had earlier threatened. The S&P 500 gained 0.5% and added to its big gain from Wednesday, when Trump said he had reached “the framework of a future deal with respect to Greenland” and called off 10% tariffs for European countries that he said opposed his having the Arctic island. The index has recovered most of the losses it took after Trum ...

Market Overview - The U.S. stock market rebounded after President Trump announced a potential deal regarding Greenland and the cancellation of threatened tariffs on several European countries [1][2] - The S&P 500 increased by 1.2%, recovering over half of its previous day's 2.1% drop, while the Dow Jones Industrial Average rose by 588 points (1.2%) and the Nasdaq composite also climbed by 1.2% [2][8] Treasury and Currency Movements - Treasury yields eased, indicating reduced investor concerns, with the 10-year Treasury yield dropping to 4.25% from 4.30% [3][9] - The U.S. dollar regained some value against other currencies after a decline the previous day [3] Company Performance - Halliburton's stock rose by 4.1% following a stronger-than-expected quarterly profit [6] - United Airlines shares increased by 2.2% after reporting better-than-expected profits and indicating strong revenue momentum into 2026 [6] - Netflix's stock fell by 2.2% despite reporting a stronger profit than anticipated, as investors were concerned about slowing subscriber growth and a lower profit forecast [7] - Kraft Heinz shares dropped by 5.7% after Berkshire Hathaway indicated it might sell its stake in the company [7][8] Market Sentiment and Historical Context - Trump's acknowledgment of the stock market's previous decline due to his Greenland ambitions suggests a pattern where his threats lead to market volatility, followed by a recovery through subsequent deals [4][5] - The "TACO" acronym reflects the market's expectation that Trump may backtrack on aggressive financial threats if they provoke strong market reactions [5]

NEW YORK (AP) — The U.S. stock market bounced back from its worst day since October on Wednesday after President Donald Trump said he reached the framework for a deal about Greenland, an island he’s long coveted, and won’t impose tariffs he had threatened on several European countries. The S&P 500 rallied 1.2% after Trump said the deal, “if consummated, will be a great one for the United States of America” and its allies in the North Atlantic region. The announcement triggered an immediate move higher in ...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Economists are reacting to President Donald Trump’s latest tariff escalation with China, as well as the subsequent walk-back over the weekend, following the sharp selloff in risk assets on Friday. ‘TACO Strikes Again’ On Sunday, in a post on X, economist Peter Schiff said, “TACO strikes again,” a term recently coined by traders and a shorthand for “Trump Always Chickens Out,” referring to Trump’s history ...