Stock Market Today (21 January 2026): Wall Street Rebounds, Gold Hits Record

Stock Market Today (21 January 2026) saw U.S. equities open modestly higher as investor sentiment improved following comments from President Donald Trump at the World Economic Forum (WEF) in Davos. Markets were rattled earlier this week by fears that the U.S. could use force to acquire Greenland, but Trump’s assurance that Washington would not pursue a military approach helped calm nerves.

Major U.S. stock indices rebounded after suffering their worst session in months on Tuesday, while gold prices extended a record-breaking rally as investors continued to seek safety amid political and policy uncertainty.

U.S. Stocks Open Higher After Sharp Sell-Off

Wall Street opened in positive territory on Wednesday after heavy losses in the previous session. The rebound came after President Trump ruled out using force to acquire Greenland, a statement that reduced fears of a fresh geopolitical crisis between the U.S. and Europe.

At the opening bell:

• S&P 500 rose 0.3% to 6,817.26
• Nasdaq Composite gained 0.26% to 23,013.93
• Dow Jones Industrial Average climbed 0.35% to 48,656.3

The gains were modest, reflecting cautious optimism rather than full confidence. On Tuesday, markets had sold off sharply, with the Nasdaq logging its worst day since October as investors reacted to Trump’s earlier comments suggesting that forceful acquisition of Greenland was “not off the table.”

Trump’s Davos Speech Reassures Markets

Speaking at the World Economic Forum in Davos, Switzerland, President Trump stated clearly that the United States would not use force to acquire Greenland. Instead, he called for immediate negotiations with Denmark over the territory.

Trump described Greenland as strategically important to North America and argued that transferring control back to Denmark in the past was a mistake. He reiterated that the U.S. wants “full ownership” of Greenland, but emphasized that diplomacy, not military action, would be the path forward.

The remarks helped ease fears of a potential U.S.–Europe trade or political conflict, which had weighed heavily on stocks earlier in the week.

Trump also used the global platform to praise the strength of the U.S. economy while criticizing Europe’s economic direction. Additionally, he renewed his call for Federal Reserve rate cuts, saying lower interest rates would be beneficial for everyone.

Gold Extends Record Rally

While stocks rebounded, gold prices continued to climb, extending a record-setting rally seen earlier this week. Investors have been moving into gold as a hedge against uncertainty surrounding geopolitics, central bank independence, and global bond market volatility.

The rally reflects ongoing concerns rather than panic. Even as equities recovered slightly, demand for safe assets remained strong, suggesting investors are still cautious about the broader outlook.

Supreme Court Case Adds to Policy Uncertainty

Adding another layer of uncertainty, the U.S. Supreme Court is set to hear arguments in the Trump administration’s case to remove Federal Reserve Governor Lisa Cook.

The case is significant because it could test:

• The independence of the Federal Reserve
• The Supreme Court’s stance on regulatory authority

Markets are watching closely, as any ruling that weakens the Fed’s independence could have long-term implications for monetary policy and investor confidence.

Earnings Season: Netflix Falls, J&J in Focus

Earnings season continued to influence individual stocks.

• Netflix shares fell despite the company reporting strong earnings. Investors appeared disappointed by guidance or future growth expectations, highlighting how high valuations leave little room for error.
• Johnson & Johnson reported results earlier in the day, drawing attention to the healthcare sector as investors look for stability amid market swings.

The mixed reaction to earnings shows that company fundamentals still matter, even during politically driven market moves.

Other Markets: Bonds Ease, Oil Slides

In global markets:

• Japan’s long-term bond yields fell from record highs reached on Tuesday. The earlier spike had sent shockwaves through global bond markets, contributing to equity losses.
• Crude oil futures dropped about 1%, reflecting concerns about global growth and weaker demand if political tensions return.

Market Analysis: What It All Means

The Stock Market Today (21 January 2026) rebound appears driven more by relief than renewed confidence. Trump’s decision to rule out military action over Greenland removed a key short-term risk, allowing stocks to recover part of their recent losses.

However, several warning signs remain:

• Gold’s continued rise suggests investors are still uneasy.
• The Supreme Court case involving the Federal Reserve could introduce longer-term uncertainty.
• Calls for rate cuts add pressure on the central bank at a sensitive time.

In simple terms, markets are breathing easier today, but they are not relaxed. Investors are balancing short-term relief with longer-term concerns about politics, policy stability, and global growth.

If diplomatic talks over Greenland progress smoothly and earnings remain solid, stocks could stabilize further. But continued political surprises or challenges to central bank independence could quickly revive volatility.

For now, Wall Street is cautiously optimistic, but firmly on alert.

Read also:

Gold and Silver Prices Hit Record Highs as Greenland Tariff Threats Shake Global Markets

What Is the Federal Reserve? Meaning, Role and Why It Matters

What Is Inflation? Meaning, Causes and How It Affects Consumers