While US President Donald Trump’s tariff threats over Greenland dominated the narrative for broader equity markets last week, investors were hedging risks elsewhere. Only three weeks into 2026, the market pattern is similar to last year: Trump makes threats, markets start to show signs of upset then, as the tension de-escalates over a few days, stocks resume a grind higher. Most Read from Bloomberg For volatility markets, it’s an all-too familiar quick spike and reversal: The Cboe Volatility Index jump ...

Market Overview - Major U.S. index futures indicate a modestly lower open on Friday, following a sharp rise in the previous two sessions, as traders may look to cash in on gains [1] - The Dow Jones Industrial Average rose by 306.78 points (0.6%) to 49,384.01, the Nasdaq increased by 211.20 points (0.9%) to 23,436.02, and the S&P 500 climbed by 37.73 points (0.6%) to 6,913.35 [5] Company-Specific News - Intel (INTC) shares are under pressure, plunging nearly 13% in pre-market trading after reporting better-than-expected fourth-quarter earnings but providing disappointing guidance for the current quarter [3][4] - The semiconductor giant's stock decline is expected to weigh on Wall Street [3] Economic Indicators - Initial jobless claims in the U.S. rose to 200,000, an increase of 1,000 from the previous week's revised level of 199,000, which was below economists' expectations of 205,000 [8] - Consumer prices in the U.S. increased in line with economist estimates for November [9] Commodity and Currency Markets - Crude oil futures surged by $1.17 to $60.53 per barrel after a previous drop [11] - Gold futures climbed by $19.50 to $4,932.90 per ounce, following a significant increase in the previous session [11] Asian Market Performance - Asian stocks ended mostly higher, with China's Shanghai Composite Index rising by 0.3% to 4,136.16, supported by Xiaomi's stock buyback announcement [12][13] - Japan's Nikkei 225 Index edged up by 0.3% to 53,846.87, while the broader Topix Index settled 0.4% higher at 3,629.70 [15] European Market Performance - European stocks traded slightly lower, with the pan-European Stoxx 600 Index down by 0.2% after a 1% surge on Thursday [19] - French lender BNP Paribas plans to eliminate about 1,200 jobs by the end of 2027, contributing to its stock decline [20]

There were doubters, all across Wall Street by some accounts, that Tuesday’s stock rout would be short-lived, a pullback not sharp enough to dissuade President Donald Trump from waging a trade war with Europe for control of Greenland. Not among them: the retail crowd. Most Read from Bloomberg Individual investors plowed $4 billion into US equities as the S&P 500 suffered its biggest draw-down in three months, according to data from JPMorgan Chase & Co. Another $2.3 billion flowed in on Wednesday, just ...

Key Points Stocks rose for the second day in a row after President Trump pulled back on a tariff threat over Greenland. The TACO (Trump Always Chickens Out) was successful again. Trump's tariff threats are likely to pop up again. 10 stocks we like better than S&P 500 Index › Stocks continued to rally on Thursday as investors breathed a sigh of relief over the detente with Greenland. After threatening to take over the Danish territory either by force or coercion, President Trump backed off as it ...

Jim Cramer is pushing back against the idea that President Donald Trump is scaring people away from the stock market. In a post on X on Wednesday, the CNBC host acknowledged that many feel discouraged by market conditions but said those emotions may be misplaced. Not All Market Drops Are Bad News, Cramer Says “I know lots of people ALREADY feel like giving up because the President makes investing so difficult,” Cramer wrote. “I disagree. He makes trading hard, but he brings down prices that shouldn’t come ...

U.S. President Donald Trump attends a reception with business leaders during the 56th annual World Economic Forum (WEF), in Davos, Switzerland, Jan. 21, 2026. Jonathan Ernst | ReutersTrump's latest retreat from a trade war has catalyzed an international asset rally — and revived investors' talk of "TACO" — "Trump Always Chickens Out." Speaking to CNBC's Joe Kernen at the World Economic Forum in Davos, Switzerland, on Wednesday evening, Trump said he'd walked back tariffs on European allies because he now ha ...

Follow-Through Rally Builds on Wednesday’s Late-Session ReversalRight now we’re actually looking at a strong follow-through rally that initially began about an hour before yesterday’s close when Trump said he wasn’t going to impose tariffs on several key European allies that were supposed to begin on February 1, who failed to back his intention to obtain Greenland.Trump also wrote on Truth Social that he and NATO Secretary General Mark Rutte have “formed the framework of a future deal with respect to Greenl ...

Core Viewpoint - The article discusses the implications of recent U.S. actions and rhetoric under President Trump, particularly regarding Europe, and emphasizes the need for Europe to strengthen its financial independence and investment at home in response to U.S. pressures [1][2][9]. Economic Context - Europe is urged to invest more of its vast savings domestically, as reliance on the U.S. economy and its capital markets poses risks, especially given the current political climate [2][11]. - The U.S. is identified as the world's largest debtor nation, relying on foreign capital, including significant European investments, to fund its deficits [6][9]. Investment Strategies - Joint borrowing within the eurozone is proposed as a means to create a safe asset that could rival U.S. Treasuries, thereby enhancing Europe's financial strength [5][12]. - The article highlights the need for Europe to better integrate its capital markets and develop a larger pool of safe assets to compete with U.S. financial instruments [12][15]. Market Reactions - The article notes that Trump's tariff threats led to market volatility, but his quick reversal indicates a vulnerability in U.S. policy and a potential leverage point for Europe [7][8]. - European investors have historically benefited from capital exports to the U.S., but the current political climate may necessitate a reevaluation of this strategy [10][15]. Future Outlook - The article suggests that ongoing tensions and unpredictability in U.S. policies could drive European investors to diversify away from U.S. assets, although this process may take time [11][15]. - The need for Europe to bolster its military and infrastructure spending is highlighted as a way to increase the supply of European bonds, which could help stem capital outflows [12][15].

The S&P 500 fell 2.1% Tuesday to about 6,800 as investors responded to President Trump's threat to impose tariffs on select European countries if they refuse to allow the U.S. to acquire Greenland. Why This Is Important Key Takeaways Stocks posted their worst day in months on Tuesday. Some strategists say it's an opportunity. "I think at worst maybe you get a 4-5% drawdown here—call it 6,500 on the S&P. I'm inclined to buy it because I think the set-up into this was quite good,†Chris Verrone, chief market s ...

Core Viewpoint - The Bank of England is closely monitoring geopolitical risks, which have recently intensified, impacting financial markets and economic conditions [1][2]. Group 1: Geopolitical Risks - Geopolitical risks have increased over the past year, contributing to a weaker U.S. dollar and record high gold prices, although the impact on markets and economic growth has been less severe than anticipated [2]. - The Bank of England emphasizes the need to remain vigilant regarding geopolitical uncertainties, which are significant considerations for financial stability [5]. Group 2: Market Reactions - Market reactions to geopolitical threats have been more muted than expected, with investors balancing extreme statements against historical trends where such threats are often not realized [2][3]. - The concept of "TACO" (Trump always chickens out) reflects a sentiment among some investors who discount extreme public statements made by political figures [3]. Group 3: Bond Yields and Financial Stability - U.S., British, and euro zone government bond yields have remained relatively stable this year, with Japanese government debt being an exception due to domestic political factors [5]. - Concerns about a loss of confidence in U.S. government debt potentially boosting demand for British government bonds were dismissed, as it could lead to negative consequences for the UK [6].