The S&P 500 Index ($SPX) (SPY) today is up +0.57%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.632%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.45%. March E-mini S&P futures (ESH26) are up +0.62%, and March E-mini Nasdaq futures (NQH26) are up +0.60%.
Stock indexes are moving higher today as they stabilize following Tuesday’s rout. Stocks are recovering today after President Trump said he is seeking “immediate negotiations” to acquire Greenland, calling the island part of North America, and that he doesn’t want to use excessive force to get Greenland. He said Tuesday’s dip in equity markets was “peanuts” and that the US stock market will soon double.
Stocks sold off sharply on Tuesday as rising geopolitical tensions between the US and Europe over control of Greenland sparked a risk-off mood in asset markets. President Trump’s push to take over Greenland is reviving fears of trade confrontations between the US and its European allies. President Trump over the weekend announced a 10% tariff on goods from eight European countries starting February 1, rising to 25% in June, unless there’s a deal for the “purchase of Greenland.”
Lower bond yields today are also helping a recovery in stocks. The 10-year T-note yield is down -1 bp to 4.28% after rising to a 4.75-month high of 4.31% on Tuesday, driven by concern about an independent Fed and negative carryover from soaring Japanese government bond yields. Japan’s 10-year JGB bond yield fell to 2.285% today, falling back from Tuesday’s 27-year high of 2.359%.
Gold prices rallied another 2% today, hitting a new record high, and are lifting mining stocks as the Greenland crisis prompted safe-haven buying of precious metals. Also, concerns that Japan’s expansionary fiscal policies will lead to soaring deficits are boosting demand for precious metals as a store of value.
Natural-gas prices (NGG26) are up more than +21% today to a 6-week high, adding to Tuesday’s +26% surge, and are boosting nat-gas producers. An Arctic cold front is…
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