Wall Street Indices Rise Amid Eased Geopolitical Tensions
On Wednesday, January 21, Wall Street’s three indices experienced an increase as geopolitical tensions subtly eased. This followed President Donald Trump’s decision to forego the use of force to acquire Greenland, expressing a preference for “immediate negotiations” instead.
The Dow Jones Industrial Average rose by 1.2% to 49,076.98 points, the S&P 500 gained 1.2% to 6,876.68 points, and the Nasdaq Composite appreciated by 1.2% to 23,224.83 points.
Trump’s Optimistic Remarks at Davos
At the World Economic Forum in Davos, Switzerland, the US President began his speech with optimistic comments, focusing on the economic situation of the United States. Trump claimed significant economic improvements during his first year in office, contrasting current economic conditions with those of the previous administration. He stated that the US had moved from “stagflation” to a period of “virtually no inflation and extraordinarily high economic growth.”
However, he quickly addressed the urgent issue of Greenland’s ownership, a semi-autonomous Danish territory that, according to the President, the US needs for national security reasons. “I seek immediate negotiations to acquire Greenland,” Trump declared, ruling out the use of force to take the island.
Christine Lagarde Expresses Concern Over Market Uncertainty
Christine Lagarde, President of the European Central Bank, stated that uncertainty had returned to the markets due to President Trump’s recent tariff threats. During her appearance at the World Economic Forum in Davos, Lagarde expressed her concern about the deteriorating trust between the US and Europe.
According to the ECB chief, companies in both regions are now grappling with calculating the potential impact of new tariffs. Trump’s potential action against European countries could challenge the ECB’s positive outlook for inflation and economic activity in the coming years.
Wall Street’s Notable Stocks and Quarterly Earnings
Netflix announced its December quarter results after the market closed on Tuesday. The streaming giant exceeded analysts’ expectations, but its forecasts for the first quarter fell short. The company warned of a decline in the audience for unbranded licensed titles, indicating that demand outside its premium original content was weakening.
United Airlines’ shares rose by 0.4% after the airline exceeded quarterly profit expectations and issued optimistic outlooks for the current quarter and full year, driven by strong demand from corporate and high-income travelers.
Kraft Heinz fell by 5% after a regulatory report indicated that Berkshire Hathaway might divest its 27.5% stake in the packaged food giant, potentially ending an investment of over a decade.
Johnson & Johnson fell by 0.1% despite the pharmaceutical giant’s forecast of sales and profits for 2026 above expectations. The company anticipates an impact of “hundreds of millions” of dollars due to a recent drug pricing agreement with the US government.
Halliburton grew by 4% after the oil services company reported its fourth-quarter earnings and revenues, which exceeded analysts’ expectations, demonstrating resilience in a challenging market.
Travelers’ shares advanced by 1% after the general insurance giant exceeded fourth-quarter earnings estimates, driven by better underwriting performance and higher investment returns.
Companies such as Procter & Gamble, GE Aerospace, Intel, Abbott Laboratories, and Intuitive Surgical will publish their results on Thursday.
