(Bloomberg) — Stocks rebounded after their biggest selloff since October as President Donald Trump said the US doesn’t want to use excessive force to get Greenland.
A day after a cross-asset slide dubbed by some as a revival of the “Sell America” trade, the S&P 500 advanced. Commodity and industrial shares led gains on Wednesday. Small caps beat the US equity benchmark for a 13th straight day. Treasuries bounced after being hit in the previous session. The dollar remained lower.
Trump said he was seeking immediate talks on Greenland, pushing for the US to acquire the Danish territory during an address to the world’s business and political elite in Davos on Wednesday. He cast the US acquisition of Greenland as essential to collective security and downplayed the danger it would pose to NATO.
The US president also hailed his policies as ushering in an American economic boom and said his agenda offered an example for Europe to follow.
Before Trump’s speech, Prime Minister Keir Starmer accused Trump of trying to strong-arm the UK on security issues, in the latest sign of how the US president’s demands on Greenland are fracturing the transatlantic alliance. France has postponed the first meeting of Group of Seven finance officials under its presidency of the club, at which Trump’s tariff threats were expected to be discussed.
JPMorgan Asset Management’s Bob Michele said Tuesday’s selloff in markets was a message to the Trump administration to take action to restore calm as officials did after Liberation Day tariffs rattled investors last year.
“Things are a bit chaotic and the markets do feel a bit panicked,” he said. “The market had a fit in April and then they backed off of a lot of things and then calm ensued. We need to hear some of the same kinds of things.”
Meantime, Treasury Secretary Scott Bessent said Deutsche Bank AG Chief Executive Officer Christian Sewing called to dismiss a report from one of the German lender’s analysts that had suggested European investors may dump US assets.
“This notion that Europeans would be selling US assets came from a single analyst at Deutsche Bank,” Bessent said Wednesday at the World Economic Forum in Davos. “The CEO of Deutsche Bank called to say that Deutsche Bank does not stand by that analyst report.”
Corporate Highlights:
Netflix Inc. gave a disappointing forecast for earnings in the months ahead as it spends more on programming and works to close its $82.7 billion deal with Warner Bros. Discovery Inc. United Airlines Holdings Inc. beat Wall Street estimates for the fourth quarter and anticipates a strong 2026, driven by demand from high-spending domestic passengers and international travelers. Johnson & Johnson’s fourth-quarter sales beat expectations, led by strong growth for several newer cancer treatments, while issuing higher-than-expected 2026 guidance despite a recent deal with the White House to give discounts on some of the company’s key drugs. Berkshire Hathaway Inc., the largest investor in Kraft Heinz Co., may soon sell some or all of its stake in the cheese and ketchup maker, just months after the firm announced plans to split into two companies As artificial intelligence threatens to upend job markets in countries around the world, Nvidia Corp. Chief Executive Officer Jensen Huang brushed off longer term concerns and made the case that skilled vocational workers are seeing increasing demand now. Charles Schwab Corp. reported net revenue that missed analysts’ estimates in the fourth quarter as the brokerage failed to fully capitalize on a strong year for the stock market. Ally Financial Inc. reported higher-than-anticipated provisions for credit losses in the fourth quarter to prepare for the potential of soured loans. Ryanair Holdings Plc’s chief executive officer said his online sparring with Elon Musk this past week has been good for business. L’Occitane Groupe, the skincare retailer that was taken private by its billionaire owner Reinold Geiger in 2024, is weighing an initial public offering in the US as soon as this year, people with knowledge of the matter said. Burberry’s sales advanced over the key holiday period as shoppers snapped up the British brand’s tartan scarves and trench coats, especially in China, bolstering hopes of a luxury rebound. Renault SA plans to reintegrate its Ampere electric vehicle and software operations as Chief Executive Officer Francois Provost reverses a strategy that sputtered due to lower-than-expected EV demand. Qiagen NV, the European molecular testing firm, is weighing strategic options including a potential sale amid fresh takeover interest, people with knowledge of the matter said.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.3% as of 9:32 a.m. New York time The Nasdaq 100 rose 0.2% The Dow Jones Industrial Average rose 0.3% The Stoxx Europe 600 fell 0.2% The MSCI World Index rose 0.1% Bloomberg Magnificent 7 Total Return Index was little changed The Russell 2000 Index rose 0.8% Currencies
The Bloomberg Dollar Spot Index fell 0.2% The euro was little changed at $1.1726 The British pound was little changed at $1.3442 The Japanese yen was little changed at 158.01 per dollar Cryptocurrencies
Bitcoin rose 0.3% to $89,652.89 Ether fell 0.4% to $2,978.63 Bonds
The yield on 10-year Treasuries declined two basis points to 4.28% Germany’s 10-year yield advanced one basis point to 2.87% Britain’s 10-year yield was little changed at 4.46% The yield on 2-year Treasuries declined two basis points to 3.58% The yield on 30-year Treasuries declined one basis point to 4.91% Commodities
West Texas Intermediate crude was little changed Spot gold rose 2% to $4,857.12 an ounce ©2026 Bloomberg L.P.
