economy
January 24, 2026
Going nowhere fast: S&P 500 ends the week down a fraction, with a lot of volatility in between
A rift between the United States and Europe over Greenland spurred a massive swing this week, but the S&P 500 closed down less than half a percent.
TL;DR
- President Trump threatened tariffs on eight European nations in response to their opposition to his efforts to annex Greenland.
- The S&P 500 and Nasdaq Composite experienced a significant drop of about 2% on Tuesday due to the tariff threats.
- The threatened tariffs were withdrawn after President Trump announced a "framework of a future deal" with NATO Secretary General Mark Rutte.
- Markets rallied on Wednesday and Thursday following the removal of the tariffs, with the S&P 500 ending the week slightly down.
- Market analysts suggest that investors are increasingly discounting Trump's tariff threats, believing he will eventually back down.
- Despite the recent rebound, geopolitical unrest and trade-related issues are expected to cause continued market volatility.
- Greenland's sovereignty remains non-negotiable, according to its Prime Minister, echoing statements from the Danish Prime Minister.
- Some strategists remain constructive on the stock market outlook, emphasizing diversification and viewing volatility as potential buying opportunities.
- There is continued constructive outlook on non-U.S. markets.
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