Stocks Rally as Trump Rules Out Force in Greenland; Dow, S&P 500, Nasdaq Jump

U.S. stocks surged on January 21, 2026, after President Trump said he would not use force to acquire Greenland, easing geopolitical tensions that had triggered a sharp sell-off the prior day. The Dow Jones Industrial Average (^DJI), S&P 500 (^GSPC), and Nasdaq Composite (^IXIC) each gained over 1%. Trump’s remarks at the World Economic Forum in Davos clarified his stance, stating, “We probably won’t get anything unless I decide to use excessive strength… But I won’t do that.” Despite calling for “immediate negotiations,” his rejection of military action helped stabilize markets. The dollar strengthened against the euro as the EU reiterated readiness to respond to new U.S. tariffs. Meanwhile, the Supreme Court heard arguments on the administration’s removal of Federal Reserve Governor Lisa Cook, raising concerns over Fed independence amid ongoing scrutiny of Chair Jerome Powell. On corporate news, Netflix (NFLX) shares fell post-earnings, as weak price reactions to strong earnings persisted across the S&P 500. Johnson & Johnson (JNJ) and Charles Schwab (SCHW) are among firms reporting Wednesday.