New York Stock Market Closing: Trump's Policy Adjustments Ease Geopolitical Risks, Nasdaq and S&P 500 Continue to Rebound

Source: BlockMedia Original Title: [New York Stock Market Close] Trump’s ‘Peaceful Approach’ Eases Rally… Nasdaq and S&P 500 Rise for the Second Day Original Link: On the 22nd (local time), the New York stock market recorded gains for two consecutive days amid the background of President Trump withdrawing tariffs on Europe and the possibility of lifting military intervention in Greenland. As geopolitical uncertainties eased, overall market sentiment improved, with large tech stocks becoming the main buying force.

That day, the Dow Jones Industrial Average closed at 49,384.01 points, up 306.78 points (0.63%) from the previous trading day. During the session, the gain briefly exceeded 300 points, essentially recovering from the sharp decline earlier in the week. The S&P 500 index rose 37.73 points (0.55%) to close at 6,913.35 points, and the Nasdaq index increased 211.20 points (0.91%) to 23,436.02 points. The Nasdaq, with a higher weighting of tech stocks, showed a relatively prominent increase.

The main catalyst for the market rebound was undoubtedly President Trump’s change in attitude. He explicitly stated during his speech at the World Economic Forum in Davos and in an interview with CNBC that “there are no plans to acquire Greenland by force,” and, together with NATO Secretary General, indicated that “a foundation has been laid for future negotiations.” Notably, he withdrew the new tariffs planned for eight European countries, which quickly alleviated the previously triggered “American asset sell-off” sentiment.

The market viewed this diplomatic retreat as a strategic negotiation tactic by the U.S. government, interpreting geopolitical risks as a short-term buying opportunity. A chief market strategist at a leading market consulting firm told CNBC that “this rally proves that the market has not ignored core fundamentals,” and added that “negotiation noise often turns into opportunities.”

In terms of sectors, technology stocks led the rebound. Major tech companies like Meta, Microsoft, and a certain chip giant became the main buyers, driving the Nasdaq higher, with the largest-cap stocks in the S&P 500 also leading the overall index.

In contrast, some cyclical-sensitive stocks such as financials and energy showed relatively limited movements. Affected by the previous day’s decline in oil prices and mixed signals on interest rates, energy stocks maintained a weak balance.

As the market found reassurance, tensions around Greenland had not been fully resolved. The Danish Prime Minister stated that “sovereignty is never negotiable,” and discussions on the U.S. missile defense agreement emphasized that “as an ally, negotiations are possible, but territorial protection is an absolute principle.”

This suggests that the Greenland issue may again trigger diplomatic tensions and indicates that the market could face uncertainties again after the short-term rise.

Despite gains for two consecutive days, on a weekly basis, the Nasdaq and S&P 500 each still declined by 0.4%. Only the Dow Jones index showed a slight reversal and increase. This indicates that the current rebound is entirely driven by short-term political easing.

Market experts pointed out that key variables for future direction include the Federal Reserve’s monetary policy (January FOMC) and the unfolding of Q4 earnings season. In the remaining trading days of this week, the release of major tech earnings reports and the rebalancing pressures caused by changes in U.S. Treasury yields and inflation expectations may become apparent.