The US stock market stabilizes after the closeworst day since Octoberalthough some signs of fear remain on Wall Street about WednesdayThat of President Donald Trumpwish to take Greenland.
The S&P 500 then rose 0.6%Trump said in a speechtold Europe’s business and government leaders that he would not use force to grab “the piece of ice.” The potential de-escalation of rhetoric, which had previously increased on talk of tariffs crossing the Atlantic, helped the index recover some of the 2.1% decline from the day before and move closer to its level.highest everestablished earlier this month.
The Dow Jones Industrial Average rose 336 points, or 0.7%, as of 11:45 a.m. Eastern time, and the Nasdaq composite was 0.5% higher.
Government bond yields also fell in the bond market, a day after a possible signal of concerns about higher long-term inflation. They were helped by a drop in bond yields in Japan, which had previously risen sharply on concerns about the size of Japan’s government debt. The value of the U.S. dollar also remained more stable against the euro, Swiss franc and other currencies, after falling the day before.
But some nerves appeared to remain in the market, and the price of gold rose another 1.7%, reaching the $4,800 per ounce mark for the first time.
Trump himself acknowledged how his desire for Greenland led to the US stock market’s decline on Tuesday, but he called it “peanuts compared to what it has risen” in the first year of his second term and said it would rise even further in the future. While he said he would not use force to take Greenland, he called for “immediate negotiations” so the United States could acquire the land from Denmark.
Trump has a history of making major threats that cause financial markets to slide, only to later back down and make deals seen as less bad for the economy or for inflation than his initial suggestion.
On the one hand, this pattern has given rise to the acronym “TACO,” which denotes “Trump Always Chickens Out” if financial markets react strongly enough. On the other hand, he ended up making deals that outsiders previously thought unlikely, which he later raves about. The most obvious example is Trump’s announcement of high tariffs on “Liberation Day,” which ultimately led to trade deals with many of the world’s major economies.
Halliburton helped lead the U.S. stock market on Wednesday, which rose 4.9% after the oilfield services company reported stronger earnings for its latest quarter than analysts expected.
United Airlines climbed 2.9% after also reporting better-than-expected profit for the end of 2025. CEO Scott Kirby said the airline’s strong revenue momentum will continue into 2026.
They helped offset a 4.8% decline for Netflix. The streamer fell even as it reported stronger-than-expected earnings as investors focused insteadthe slowing growth of the number of subscribersand the lower-than-expected earnings forecast in the current quarter.
Kraft Heinz fell 5.4% after Berkshire Hathaway warned investors Tuesday that it might be interestedthe sale of its 325 million sharesin the food giant that former CEO Warren Buffett helped create in 2015.
Berkshire took oneWrite-off of $3.76 billionlast summer on his stake in Kraft-Heinz. Buffett said last fall that he was disappointed in Kraft Heinz’s workplans to split the companyin two, and Berkshire’s two representatives resigned from Kraft’s board last spring.
On the bond market, the yield on ten-year government bonds fell from 4.30% at the end of Tuesday to 4.27%. But it is still above Friday’s level of 4.24%.
That was before Trump threatened itImposing 10% tariffsDenmark, Norway, Sweden, Germany, France, the United Kingdom, the Netherlands and Finland will begin in February as they oppose U.S. control of Greenland. That would be on top of a 15% tariff set in a trade deal with the European Union that has yet to be ratified.
On foreign stock markets, the indexes showed a mixed picture, with mostly modest movements in Europe and Asia.
Japan’s Nikkei 225 fell 0.4%.
The country’s Prime Minister, Sanae Takaichi, has done soso-called early electionsfor February 8, which would have pushed up long-term government bond yieldsreaching record levels. Takaichi, benefiting from strong public support, is expected to cut taxes, boost spending and add to the government’s already heavy debt burden.
The yield on the 40-year Japanese government bond fell to 4.05% on Wednesday, down from the 4.22% level it rose to on Tuesday.
—Stan Choe, AP business writer
AP Business writers Chan Ho-him and Matt Ott contributed.
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