Wall Street Rises After Trump Rules Out Use of Force in Greenland
Despite the harsh rhetoric, U.S. equities opened slightly higher after Trump explicitly ruled out the use of force to acquire Greenland.
Quick overview
- U.S. stocks rose on January 21 after President Trump's speech at the World Economic Forum, despite initial negative market reactions.
- Trump criticized the European Union during his address, claiming Europe is not progressing and highlighting issues with progressive policies.
- Markets reversed course after Trump clarified he would not use military force to acquire Greenland, leading to a positive sentiment on Wall Street.
- Global markets showed mixed results, with U.S. indexes gaining while European markets experienced declines.
U.S. stocks moved higher on Wednesday, January 21, following President Donald Trump’s highly anticipated speech at the World Economic Forum in Davos.
Initial market reaction was negative, with futures slipping in pre-market trading amid Trump’s sharp criticism of the European Union. However, once markets officially opened, major indexes reversed course after the Republican president stated that while he seeks to acquire Greenland, he does not intend to use military force.
Global markets showed mixed performance. In Europe, Germany’s DAX fell 0.5%, the Euro Stoxx 50 declined 0.4%, and Italy’s FTSE MIB dropped 0.5%, while London’s FTSE 100 edged up 0.1% and France’s CAC 40 gained 0.1%, reflecting a lack of a clear regional trend. On Wall Street, sentiment was more positive: the Dow Jones rose 0.6%, the S&P 500 advanced 0.4%, and the Nasdaq added 0.1%.
Donald Trump Moderated his Speech
During his speech, Trump took aim at Europe amid tensions surrounding Greenland, arguing that “Europe is not doing well” and “is not moving in the right direction.” Much of his address focused on criticizing policies adopted by European governments in recent years, particularly those he described as “progressive.”
“Frankly, many parts of the world are being destroyed before our very eyes, and leaders don’t even understand what’s happening. And those who do understand are doing absolutely nothing about it,” Trump said.
Despite the harsh rhetoric, U.S. equities opened slightly higher after Trump explicitly ruled out the use of force to acquire Greenland. “People thought I would use force. I don’t have to use force. I don’t want to use force. I will not use force,” he said.
His remarks came one day after the S&P 500 fell 2.1%, marking its worst session since October. That sell-off was triggered by Trump’s threat to impose a 10% tariff on European countries that oppose his ambitions regarding Greenland.
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