The S&P 500 Index closed up 1.16% on Wednesday, while the Dow Jones gained 1.21% and the Nasdaq 100 rose 1.36%. This rally followed President Trump’s announcement of a framework deal with NATO regarding Greenland, prompting a rebound in the markets after suffering losses the previous day. Additionally, March E-mini S&P and Nasdaq futures increased by 1.18% and 1.38%, respectively.
Investor confidence was bolstered by a decline in 10-year Treasury note yields, dropping 4 basis points to 4.25%, and significant movements in commodity prices, notably a 24% rise in natural gas prices due to a cold front in the eastern U.S. Gold also reached a record high, increasing by 1% amid rising safe-haven demand. Meanwhile, U.S. mortgage applications surged 14.1% in the week ending January 16, with interest rates slightly declining.
The stock markets are closely monitoring economic indicators this week, as initial unemployment claims are expected to rise by 11,000 to 209,000, and the Q3 GDP is projected to remain unrevised at 4.3%. Furthermore, the Supreme Court’s upcoming decision on President Trump’s tariffs could influence market dynamics significantly.
