By Rosemary
U.S. stocks rebounded Wednesday following their steepest decline in months, buoyed by comments from President Donald Trump suggesting he would not use force to pursue U.S. control of Greenland, though lingering signs of investor unease underscored continued uncertainty on Wall Street.
The S&P 500 rose 0.7 percent, clawing back part of the 2.1 percent loss it suffered a day earlier, its worst performance since October. The recovery followed remarks Trump made during a speech to business and government leaders in Europe, where he said he would not resort to military action to take what he described as “the piece of ice,” a reference to Greenland. The softer tone helped calm markets that had been rattled by fears of escalating geopolitical tensions and potential economic fallout.
The Dow Jones Industrial Average climbed 353 points, also up 0.7 percent by mid-morning in New York, while the Nasdaq composite advanced 0.7 percent as well. The gains pulled major indexes closer to record highs set earlier in the month, though traders remained cautious.
Bond markets also showed signs of stabilization after turbulence earlier in the week. Treasury yields, which had jumped amid concerns about longer-term inflation and global uncertainty, edged lower. The yield on the benchmark 10-year Treasury eased to 4.28 percent from 4.30 percent late Tuesday, though it remained above levels seen before Trump announced plans for new tariffs on several European countries. Calmer conditions in Japan’s government bond market contributed to the steadier tone, while the U.S. dollar traded mixed against major currencies, including the euro and Swiss franc.
Despite the rebound in equities, investor anxiety was evident elsewhere. Gold prices surged another 2.1 percent, pushing above $4,800 per ounce for the first time, a sign that demand for traditional safe-haven assets remains strong amid geopolitical and policy uncertainty.
Trump himself acknowledged that his comments about Greenland had contributed to Tuesday’s market selloff, but he downplayed the move, calling it “peanuts” compared with the gains recorded during the first year of his second term. While ruling out the use of force, he reiterated his call for “immediate negotiations” with Denmark over the future of Greenland, keeping the issue firmly on investors’ radar.
Corporate earnings and company-specific developments helped shape trading on Wednesday. Halliburton was among the strongest performers in the S&P 500, rising 3.9 percent after the oilfield services company reported quarterly profits that exceeded analysts’ expectations, signaling resilience in energy-sector demand.
United Airlines climbed 4.2 percent after posting stronger-than-expected earnings for the final quarter of 2025. Chief executive Scott Kirby said the airline’s momentum in revenue and bookings has carried into 2026, reinforcing optimism about travel demand.
Those gains were partially offset by declines elsewhere. Netflix fell 2.6 percent despite reporting higher-than-expected profits, as investors focused instead on a slowdown in subscriber growth, raising questions about the streaming giant’s longer-term expansion.
Kraft Heinz slid 4.9 percent after Berkshire Hathaway warned investors it may consider selling its 325 million-share stake in the food company. Berkshire, which took a multibillion-dollar write-down on the investment last summer, has grown increasingly critical of Kraft Heinz’s strategy, including plans to split the company. Warren Buffett has previously expressed disappointment with the direction of the business, and Berkshire’s representatives stepped down from the board last year.
In commodities markets, natural gas futures jumped more than 8 percent as traders anticipated higher heating demand amid a cold snap and severe storms affecting large parts of the United States.
Overseas markets were mixed. European stocks posted modest moves, while Asian markets showed little direction. Japan’s Nikkei 225 slipped 0.4 percent, weighed down by political developments at home.
Japanese Prime Minister Sanae Takaichi’s decision to call a snap election for Feb. 8 sent ripples through the country’s bond market, with investors anticipating tax cuts and increased government spending if her party consolidates power. Those expectations briefly pushed yields on long-term Japanese government bonds to record levels earlier in the week, intensifying concerns over Japan’s already heavy debt burden. On Wednesday, yields eased, with the 40-year government bond yield falling back to 4.05 percent from Tuesday’s peak.
While Wall Street welcomed Trump’s softer rhetoric, the combination of rising gold prices, elevated bond yields and sensitivity to political headlines suggested that markets remain on edge, with investors closely watching for further signals on trade, geopolitics and monetary policy in the weeks ahead.
Original article
Comments