Category: Market Summary

U.S. equity futures moved higher, reflecting a sense of relief after President Donald Trump said he would not go ahead with new tariffs on several European countries tied to his stance on Greenland. According to media reports, the decision followed talks with NATO and European officials, though concrete details on the so-called “framework of a future deal” remain limited. Gold prices eased back from record levels, while investors also looked ahead to earnings from Intel (NASDAQ:INTC) and key U.S. inflation data closely monitored by the Federal Reserve.

Futures point higher

U.S. stock futures traded in positive territory on Thursday, as markets welcomed Trump’s reversal on additional tariffs targeting Europe.

By 03:00 ET, Dow futures were up 61 points, or 0.1%, S&P 500 futures gained 20 points, or 0.3%, and Nasdaq 100 futures rose 117 points, or 0.5%.

Wall Street ended higher on Wednesday, rebounding from its steepest drop since October in the previous session. The recovery followed Trump’s announcement that he had reached a “framework of a future deal” with NATO leadership concerning Greenland.

After days of warning that new tariffs would be imposed on eight European countries from February 1 unless the U.S. was allowed to assume control of the semi-autonomous Danish territory, Trump confirmed those measures would not be implemented.

Investors were also digesting a growing wave of corporate earnings as reporting season gathered momentum. United Airlines shares jumped more than 2% after a strong fourth-quarter profit beat, while Netflix fell over 2% after issuing softer-than-expected forward guidance.

Trump softens stance on Greenland tariffs

Trump’s policy reversal, which reportedly came after behind-the-scenes discussions with NATO and European leaders, helped ease concerns that the Greenland dispute could further strain transatlantic relations.

In a social media post, Trump said the agreement “if consummated” would be “a great one for the United States of America” and for “all Nations” within NATO.

He offered few additional details, noting only that “additional discussions” are taking place around the proposed “Golden Dome” defence system “as it pertains to Greenland.” The Wall Street Journal reported, citing European officials familiar with the talks, that negotiations are likely to focus on a potential U.S.-Denmark agreement covering troop deployments on the island and a broader expansion of Europe’s security role in the Arctic.

The report also said the U.S. would gain a first right of refusal over Greenland’s mineral resources. The territory holds significant rare-earth reserves, critical to many industries and a recurring theme in recent U.S. trade negotiations, particularly with China.

Earlier on Wednesday, Trump also appeared to rule out the use of military force to secure Greenland while addressing delegates at the World Economic Forum in Davos.

The rebound in risk assets was accompanied by a firmer U.S. dollar. Analysts at ING said that while investors may still seek more clarity on the Greenland agreement, the Federal Reserve’s policy meeting next week “means some refocus on macro drivers is on the cards.”

Gold pulls back from highs

Gold prices slipped in European trading after touching record levels in the prior session, as Trump’s tariff retreat reduced demand for safe-haven assets.

Spot gold edged down 0.1% to $4,826.25 an ounce by 03:40 ET, retreating from a record $4,888.1 reached a day earlier. U.S. gold futures fell 0.2% to $4,826.39 an ounce.

Bullion had surged more than 6% over the past three sessions amid heightened geopolitical uncertainty tied to Greenland and potential tariffs on European imports, pushing prices close to the psychological $5,000 mark.

Intel earnings ahead

Intel is scheduled to report results after the U.S. market close on Thursday.

Under CEO Lip-Bu Tan, the California-based chipmaker has been cutting costs and reinforcing its balance sheet as competition intensifies in the PC and server processor markets.

Investors are also watching to see whether Intel’s efforts to gain traction in artificial intelligence chips are starting to pay off. The company received significant backing last year from Nvidia, SoftBank and the U.S. government, with Nvidia alone purchasing $5 billion worth of Intel shares in December.

Earlier this month, Intel unveiled a new AI-focused laptop chip, aiming to reassure markets about products built on its next-generation manufacturing technology.

Other companies reporting earnings today include Procter & Gamble and GE Aerospace.

Inflation data in focus

On the economic front, attention will turn to the U.S. personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge.

The November core PCE reading is expected to hold at 0.2% month on month and 2.8% year on year.

Earlier Labor Department data showed headline U.S. consumer inflation was unchanged in December, while underlying price pressures eased slightly. ING analysts said the PCE report could reinforce signs of “muted” inflation, a key factor shaping the Fed’s interest-rate outlook.

Employment data will also be watched later today, with weekly jobless claims due for release. Last week, first-time claims fell below 200,000.

European defence shares moved lower on Thursday after U.S. President Donald Trump said he would not move ahead with new tariffs on European countries, pointing to progress toward “the framework of a future deal” related to Greenland.

In early trading, Germany’s Rheinmetall (TG:RHM) fell around 2% by 09:33 GMT. Italy’s Leonardo SpA (BIT:LDO) declined 1.8%, while France’s Thales (EU:HO) was down 1.2%. Sweden’s SAAB (BIT:1SAAB) dropped 2.2%.

Trump said the shift in stance followed discussions with NATO secretary-general Mark Rutte, which he described as “very productive.” He added that talks would continue and could result in an agreement that, “if consummated,” would be “a great one” for both the United States and NATO allies.

“Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st,” Trump wrote on Truth Social. He also noted that “additional discussions are being held concerning The Golden Dome as it pertains to Greenland,” referring to his proposed missile defence initiative.

Speaking later on Wednesday in an interview with CNBC, Trump confirmed that the tariff threat had been withdrawn. “We took that off the table,” he said, referring to duties previously aimed at European nations opposing a U.S. takeover of Greenland. “Because we had pretty much the concept of a deal.”

He suggested the emerging framework could include Greenland’s natural resources. “They’re going to be involved in mineral rights and so are we.”

The comments marked a further retreat from earlier tariff rhetoric and signalled a softer tone on Greenland. They came just hours after Trump told an audience at the World Economic Forum that he would not use force to acquire the territory from Denmark, while urging European leaders to back the proposal.

Europe, Trump said, faced a clear decision. “You can say yes and we will be very appreciative, or you can say no and we will remember.”

U.S. equity futures are pointing to a slightly weaker start on Wednesday, suggesting stocks could extend their recent slide after a sharp sell-off in the previous session.

Market sentiment remains under pressure as investors weigh the risk of a deepening trade dispute between the United States and Europe, sparked by President Donald Trump’s push to bring Greenland under U.S. control. These geopolitical tensions continue to hang over Wall Street.

Attention is also focused on Trump’s remarks at the World Economic Forum in Davos, Switzerland, where he is expected to outline his stance on trade and international relations.

After ending last Friday’s volatile session modestly lower, U.S. stocks came under heavy pressure on Tuesday. All three major benchmarks posted steep declines, compounding losses from the prior week.

Selling accelerated into the close, leaving the indices near their intraday lows. The Dow Jones Industrial Average dropped 870.74 points, or 1.8%, to 48,488.59. The Nasdaq Composite slid 561.07 points, or 2.4%, to 22,954.32, while the S&P 500 fell 143.15 points, or 2.1%, to 6,796.86.

The downturn was fueled by renewed fears of a transatlantic trade conflict tied to Trump’s efforts to acquire Greenland.

The president has warned he would impose fresh tariffs on several European countries if they oppose a U.S. bid to buy the Danish territory, which he has described as strategically vital for national security.

Posting on Truth Social, Trump said he plans to introduce 10% tariffs on imports from Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands and Finland starting February 1, with the rate rising to 25% from June 1 unless a deal is reached.

“Comments from the US president that there is ‘no going back’ on Greenland have sent US indices down sharply today as the world tries to figure out whether this is another example of strategic game-playing masked by bluster, or if he is deadly serious about a land grab from a NATO ally,” said AJ Bell head of financial analysis Danni Hewson.

She added, “There is no certainty that the temperature can be turned down this time, and the continued surge in the price of gold suggests many are hoping for the best but looking to further pad out portfolios with safe haven assets.”

Sector-wise, housing-related stocks were among the hardest hit, dragging the Philadelphia Housing Sector Index down 2.5%.

Airlines also faced heavy selling pressure, with the NYSE Arca Airline Index falling 2.4%.

Weakness spread across networking, brokerage and retail shares, while gold mining stocks surged alongside rising bullion prices.

Futures tied to major U.S. equity indices edged higher on Wednesday as investors cautiously looked ahead to President Donald Trump’s speech at the World Economic Forum in Davos. Markets remain on edge over Trump’s renewed push for U.S. control of Greenland and his threats to impose additional tariffs on several European countries — issues expected to feature prominently in his meetings with world leaders on the sidelines of the event. Elsewhere, Netflix (NASDAQ:NFLX) issued restrained financial guidance after enhancing its bid for Warner Bros. Discovery (NASDAQ:WBD), while a regulatory filing suggested Berkshire Hathaway (NYSE:BRK.B) could reduce or exit its stake in Kraft Heinz (NASDAQ:KHC).

Futures edge up

U.S. stock futures pointed modestly higher, indicating a tentative rebound after Wall Street suffered its sharpest one-day decline since October in the previous session.

By 02:21 ET, Dow futures were up 103 points, or 0.2%, S&P 500 futures had risen 27 points, or 0.4%, and Nasdaq 100 futures were higher by 114 points, or 0.5%.

Markets were rattled on Tuesday as geopolitical and trade concerns resurfaced following President Trump’s warning that he could impose fresh tariffs on several European countries if his demands regarding Greenland were not met. U.S. Treasury yields climbed sharply, pushing the benchmark 10-year yield to its highest level since August, while the dollar weakened against a basket of major currencies.

Investors are now weighing how likely Trump is to follow through on his threats and how aggressively European governments might respond. Adding to the cautious mood, Japanese government bond yields have also been rising ahead of a snap election scheduled for early next month.

Trump in the spotlight at Davos

Trump is set to take center stage later on Wednesday as he attends the World Economic Forum in Switzerland.

He is expected to meet with a number of global leaders and continue pressing his case for Greenland, the semi-autonomous Danish territory he argues the U.S. needs for national security reasons.

On Tuesday, Trump struck a slightly softer tone, saying he wanted to reach an agreement that would make America’s NATO allies “very happy.” However, when asked how far he would be willing to go to secure Greenland, he replied simply, “You’ll find out.”

Despite the more conciliatory language, markets remain nervous. Trump has warned he could impose additional 10% tariffs on eight European countries over the issue, potentially lifting them to 25% in June if his demands are not met. European leaders have described the threat as blackmail, a message echoed at Davos by French President Emmanuel Macron.

According to the Wall Street Journal, Trump’s speech is also expected to outline elements of his second-term economic agenda, where tariffs continue to play a central role.

Netflix posts “mixed” outlook

Netflix shares fell in after-hours trading after the streaming giant released guidance that investors viewed as cautious, as it pursues a major acquisition of Warner Bros. Discovery.

The company forecast first-quarter operating margins of 32.1% and revenue of $12.16 billion, both below Wall Street expectations. For 2026, Netflix projected revenue with a midpoint of $51.2 billion, ahead of forecasts, but an operating margin of 31.5%, nearly 100 basis points below analyst estimates due in part to roughly $275 million in acquisition-related costs.

That said, Netflix reported strong fourth-quarter results, with revenue rising to $12.05 billion and net income to $2.42 billion, supported by popular releases including the final season of “Stranger Things” and the launch of “Frankenstein.” Paid memberships also surpassed 325 million.

The results followed Netflix’s move to improve its roughly $72 billion offer for Warner Bros.’ studios and streaming assets, as it competes in a bidding battle with Paramount Skydance.

Jefferies analysts described the earnings as “mixed,” adding that “[i]ncreased deal certainty” would be a “positive catalyst” for the stock.

Later on Wednesday, attention will also turn to earnings reports from Johnson & Johnson and Charles Schwab.

Berkshire signals possible Kraft Heinz exit

After U.S. markets closed, Berkshire Hathaway disclosed that it could sell up to 325 million shares of Kraft Heinz — effectively its entire holding in the food group and about 27.5% of the company’s outstanding shares.

Berkshire has previously written down the value of its Kraft Heinz stake and has been critical of the company’s strategy, including plans to break up its operations. Kraft Heinz shares fell more than 3% in after-hours trading following the filing.

Analysts at Vital Knowledge said the potential divestment would mark the “first major corporate action” under Berkshire’s new chief executive, Greg Abel, successor to Warren Buffett. They added that the move suggests Abel is “already working to put his imprint on the firm’s sprawling portfolio” and reflects “purely” a pessimistic outlook for the packaged food sector, rather than any need for liquidity.

Gold hits fresh records

Gold prices surged to new all-time highs on Wednesday, breaking above $4,800 an ounce and nearing $4,900, as escalating tensions linked to Greenland and renewed trade frictions unsettled markets and boosted demand for safe-haven assets.

Spot gold rose 2.3% to $4,862.75 an ounce by 03:35 ET, after earlier touching a record $4,887.82. U.S. gold futures also climbed 2.1% to a new high of $4,865.91.

Oil prices, meanwhile, fell sharply on concerns that U.S. tariff threats could weigh on global growth. The declines followed gains of nearly 1.5% in the previous session, after OPEC+ producer Kazakhstan temporarily halted output at two oilfields, raising supply worries.

Beyond geopolitics, markets are awaiting the International Energy Agency’s monthly report later in the day, as well as upcoming data on U.S. crude oil and gasoline inventories.

U.S. stock futures are signalling a sharply lower start to Tuesday’s session, pointing to renewed selling pressure as markets reopen after the long holiday weekend.

Investor nerves have been rattled by fresh concerns over a potential escalation in trade tensions between the United States and Europe, stemming from President Donald Trump’s renewed push to take control of Greenland. Trump has warned that countries opposing the move could face new tariffs, arguing that ownership of the Danish territory is essential to U.S. national security.

In a post on Truth Social, Trump outlined plans to impose a 10% tariff on imports from Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands and Finland starting February 1. He added that the duties would increase to 25% from June 1 and remain in force until an agreement is reached allowing the U.S. to purchase Greenland.

“Investors will be hoping for some sort of de-escalation deal on Greenland which removes the risk of a break-up or at least serious rupture in the Nato alliance,” said AJ Bell investment director Russ Mould. “If the crisis deepens it is unlikely to spell good news for global equities.”

He added, “Nasdaq looks set to chalk up the biggest declines amid concern about possible retaliatory action from Europe against America’s big tech contingent.”

U.S. equities ended last week on a soft note. Stocks initially moved higher early on Friday but quickly lost momentum, with trading remaining choppy and directionless for most of the session. The major indices hovered around flat levels before closing modestly lower.

The Dow Jones Industrial Average slipped 83.11 points, or 0.2%, to 49,359.33. The Nasdaq Composite fell 14.63 points, or 0.1%, to 23,515.39, while the S&P 500 edged down 4.46 points, or 0.1%, to 6,940.01.

For the week as a whole, the Nasdaq declined 0.7%, while the S&P 500 and the Dow posted losses of 0.4% and 0.3%, respectively.

Market volatility was also influenced by comments from Trump that cast doubt on whether National Economic Council Director Kevin Hassett remains his preferred candidate to succeed Jerome Powell as Federal Reserve chair.

“I see Kevin’s in the audience, and I just want to thank you. You were fantastic on television today,” Trump said during at appearance at the White House. “I actually want to keep you where you are, if you want to know the truth.”

Hassett had been widely viewed as the frontrunner to replace Powell, whose term ends in May, but prediction markets now suggest former Fed Governor Kevin Warsh has moved into the lead following Trump’s remarks.

The uncertainty around the Fed leadership transition has added another layer of caution for investors already grappling with rising geopolitical risks. Traders remain wary as tensions surrounding Greenland persist, alongside ongoing concerns tied to Venezuela, political unrest in Iran and the war between Russia and Ukraine.

On the economic front, data from the Federal Reserve showed U.S. industrial production rose more than expected in December. Output increased 0.4%, matching an upwardly revised gain in November, while economists had forecast a modest 0.1% rise.

Most sectors ended Friday with only small moves, contributing to the muted market close. Commercial real estate stocks were a notable exception, with the Dow Jones U.S. Real Estate Index rising 1.2%.

Semiconductor stocks also extended their rally from Thursday, lifting the Philadelphia Semiconductor Index by 1.2% to a new record closing high. In contrast, steel stocks retreated, with the NYSE Arca Steel Index falling 1.2% after posting its strongest close in more than 17 years the previous session.