Stepping Back from 'Greenland Tariffs': What Choices Did the New York Stock Market Make?

On the 22nd (local time), U.S. equities closed higher for a second straight session. The Dow Jones Industrial Average rose about 0.6%, the S&P 500 gained 0.6%, and the Nasdaq Composite added 0.9%. The Russell 2000, which tracks small-cap stocks, hit a record high for the eighth time this year. The primary catalyst was President Trump’s decision to withdraw his threat of additional tariffs on European allies over the Greenland issue and to effectively rule out military force.

In intraday data, the personal consumption expenditures (PCE) price index came in at a 0.2% gain month-over-month and a 2.8% increase year-over-year, matching expectations. Although this remains above the Fed’s 2% target, most market participants interpreted it as signaling limited upside pressure on inflation. The 10-year Treasury yield held steady around 4.25%. With the Federal Open Market Committee meeting scheduled for January 27–28, investors are leaning toward a rate-hold outcome and appear to be reacting more to the easing of tariff risks than to rate-hike concerns.

On the corporate front, big tech stocks broadly advanced. Intel, trading ahead of its after-hours earnings release, gave back some earlier gains and finished slightly higher. All members of the “Magnificent Seven,” including Meta, were up. Among companies that have already reported, GE Aerospace, Abbott and McCormick delivered solid results but saw share-price weakness as investors took profits. By contrast, Procter & Gamble’s stock rebounded after it posted earnings that modestly beat expectations.

In global asset markets, risk and safe-haven assets diverged. Gold futures climbed past $4,930 an ounce to a fresh high, while WTI crude oil fell more than 2% to $59.35 a barrel. In the U.S., natural-gas futures surged 60% over two days amid an extreme cold snap, heightening energy-market volatility. Given the intra-day swings driven by tariff and policy headlines, investors are advised to employ a defensive approach—focusing on individual earnings and sector momentum—rather than broad market bets until the Fed meeting concludes.