Wall Street rebounds: Dow gains 353 points as Trump rules out military force in Greenland
Davos: The U.S. stock market staged a recovery on Wednesday following its sharpest decline since October, as investors weighed President Donald Trump’s latest comments on his proposal to acquire Greenland.
The S&P 500 rose 0.7%, reclaiming a portion of the 2.1% loss it suffered a day earlier. The rebound was sparked by Trump’s address to global leaders in Davos, Switzerland, where he stated he would not use military force to secure the territory he referred to as a “piece of ice.” The Dow Jones Industrial Average gained 353 points, or 0.7%, while the Nasdaq composite also climbed 0.7%.
Despite the upward move in equities, safe-haven demand remained high. Gold prices surged 2.1%, crossing the $4,800-per-ounce threshold for the first time in history.
Trump acknowledged the market’s volatility but dismissed Tuesday’s sell-off as “peanuts” compared to gains made during his second term. While cooling talk of military action, the president called for “immediate negotiations” with Denmark for the United States to purchase the autonomous island.
ALSO READ: Trump warns Europe ‘not heading in the right direction’ at Davos 2026
Corporate Earnings Drive Gains
Leading the market's advance were companies reporting strong quarterly results:
- Halliburton: Shares jumped 3.9% after the oilfield services giant reported fourth-quarter profits that significantly outpaced analyst expectations.
- United Airlines: The carrier climbed 4.2% on better-than-expected year-end results for 2025. CEO Scott Kirby noted that strong revenue momentum is persisting into 2026.
These gains helped offset losses in other sectors:
- Netflix: The streaming giant fell 2.6% as investors looked past a profit beat to focus on a significant slowdown in subscriber growth.
- Kraft Heinz: Shares sank 4.9% after a regulatory filing revealed that Berkshire Hathaway may sell its entire 325 million-share stake in the company. The move follows the recent transition of leadership at Berkshire from Warren Buffett to Greg Abel.
ALSO READ: UN Chief António Guterres blasts Trump’s Greenland bid
Bond Markets and Global Pressures
In the bond market, the 10-year Treasury yield eased to 4.28% from Tuesday's peak of 4.30%. However, yields remain elevated following Trump’s recent threat to impose 10% tariffs on several European nations, including the U.K., France, and Germany, starting in February.
Energy markets also saw a spike, with natural gas futures rising more than 8% as a severe cold snap and winter storms moved across the United States.
Overseas, Japanese markets remained volatile. The Nikkei 225 fell 0.4% as the country prepares for a snap election on Feb. 8. Prime Minister Sanae Takaichi’s plans for tax cuts and increased spending have pushed Japanese government bond yields to their highest levels in decades. The 40-year Japanese bond yield pulled back to 4.05% Wednesday after hitting a record 4.22% on Tuesday.
With inputs from AFP