US stocks climb some more after Trump calls off his tariffs for
Greenland
[January 23, 2026] By
STAN CHOE
NEW YORK (AP) — U.S. stocks rose again Thursday and regained more of
their losses for the week following the latest walk back by President
Donald Trump from tariffs he had earlier threatened.
The S&P 500 gained 0.5% and added to its big gain from Wednesday, when
Trump said he had reached “the framework of a future deal with respect
to Greenland” and called off 10% tariffs for European countries that he
said opposed his having the Arctic island. The index has recovered most
of the losses it took after Trump shook financial markets with his
initial tariff threat.
The Dow Jones Industrial Average climbed 306 points, or 0.6%, and the
Nasdaq composite rose 0.9%.
It’s the latest example of Trump making a big, initial threat, only to
pull back after seeing how much pain it created in financial markets.
The pattern has led to the “TACO” acronym, suggesting that “Trump Always
Chickens Out” if markets react strongly enough. Tuesday’s drop for the
U.S. stock market was the worst since October and large enough that
Trump, who often takes credit when Wall Street is doing well,
acknowledged “the dip.”
But the pattern has also led to deals for Trump that outsiders may have
initially considered unlikely if not for his market-shaking opening
moves.
Details are still sparse about the framework of a deal on Greenland that
Trump said he reached with the head of NATO. And it is not a signed deal
yet.
Financial markets were still showing some signs of nervousness on
Thursday. Gold’s price swiveled between small losses and gains before
turning 1.6% higher. Its price often rises when investors are looking
for something safer to own. The value of the U.S. dollar also weakened
against the euro and several other foreign currencies.
But Treasury yields held relatively steady in a signal that foreign
investors weren’t rushing out of the U.S. bond market.
Yields got some support from reports on the U.S. economy’s strength that
came in better than expected. One said fewer U.S. workers applied for
unemployment benefits last week than economists expected in a potential
signal that the pace of layoffs remains low. A second suggested the U.S.
economy grew at a faster rate during the summer than the government
initially estimated.
A third said that inflation in November was close to economists’
expectations, while spending by U.S. consumers was a touch better than
expected.
The yield on the 10-year Treasury climbed as high as 4.28% following the
reports, but it later eased to 4.25% from 4.26% late Wednesday.
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Trader Edward Curran works on the floor of the New York Stock
Exchange, Thursday, Jan. 22, 2026. (AP Photo/Richard Drew)
 On Wall Street, Northern Trust
climbed 6% after reporting a stronger profit for the end of 2025
than analysts expected. CEO Michael O’Grady also said that the
financial services company is entering 2026 with “strong momentum
across all our businesses.”
Procter & Gamble added 2.6% after likewise delivering a better
profit than analysts expected. Revenue for the company behind the
Downy, Pantene and Tide brands, though, fell just shy of
expectations amid what CEO Shailesh Jejurikar called a “challenging
consumer and geopolitical environment.”
Shares of BitGo, a company that helps crypto businesses and
traditional financial firms hold and manage digital assets, rose
2.7% in their debut on the New York Stock Exchange. The company
priced its stock at $18 per share in its initial public offering,
above its earlier estimated range of $15 to $17.
JPMorgan Chase rose 0.5% after a lawsuit filed by Trump against the
bank caused minor ripples for its stock. Trump accused JPMorgan
Chase of closing his accounts for political reasons after he left
office in 2021.
They helped offset an 8.1% drop for spice seller McCormick & Co.,
whose profit fell short of expectations. CEO Brendan Foley said it
continues to face rising costs because of “a shifting global trade
environment.”
All told, the S&P 500 rose 37.73 points to 6,913.35. The Dow Jones
Industrial Average added 306.78 to 49,384.01, and the Nasdaq
composite gained 211.20 to 23,436.02.
In stock markets abroad, indexes climbed across Europe and Asia amid
relief on Trump’s walk back of tariffs.
Japan’s Nikkei 225 jumped 1.7%, and Germany’s DAX returned 1.2% for
two of the world’s bigger moves.
Global markets also got support from a continued easing of long-term
yields in Japan’s bond market. They had spiked early in the week on
worries that Japan’s popular prime minister could make moves that
would add heavily to the government’s already big debt.
But the 40-year Japanese government bond yield has come back since
hitting a record and dropped below 4% on Thursday after hitting
4.22% on Tuesday.
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AP Business Writers Chan Ho-him and Matt Ott contributed.
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