US close: Stocks rise on easing geopolitical tensions, GDP data beat
By Benjamin Chiou
Date: Thursday 22 Jan 2026
(Sharecast News) - US stocks put in strong gains again on Thursday on the back of easing geopolitical tensions, as markets continued to rebound after a heavy sell-off at the start of the week.
Donald Trump dialling back his rhetoric surrounding Greenland helped to repair sentiment, while better-than-forecast GDP data and personal spending growth helped to boost risk appetite.
The Dow finished over 1,000 points higher, up 0.9% at 49,516.77, settling less than 80 points away from its all-time closing high reached last week.
The S&P 500 and Nasdaq gained 0.8% and 0.9% respectively, with both now having mostly erased losses from Tuesday's market-wide sell-off, when investors were playing catchup after MLK Day to react to last weekend's geopolitical developments.
Speaking at the World Economic Forum in Davos, Trump said he would no longer proceed with new tariffs on European nations that had been scheduled to take effect on 1 February, adding that a "framework" for a deal over Greenland had been reached.
Trump, who has ramped up his push for US control of Greenland in recent weeks, said that he and NATO secretary general Mark Rutte had "formed the framework of a future deal with respect to Greenland". He later said "we have a concept of a deal" regarding the Arctic territory, having already ruled out acquiring Greenland by force.
Nevertheless, the geopolitical backdrop remains unsettled, with Danish prime minister Mette Frederiksen underlining that Greenland's sovereignty was not up for negotiation. "The Kingdom of Denmark wishes to continue to engage in a constructive dialogue with allies on how we can strengthen security in the Arctic, including the US's Golden Dome, provided that this is done with respect for our territorial integrity," said Frederiksen.
"It's been an odd day for markets as investors try and figure out what the recent upheaval really means for the global economy," said Danni Hewson, AJ Bell's head of financial analysis. "Did Donald Trump really chicken out or was this another example of the US president making outlandish demands and then settling for what he really wants?"
Economic data takes a back seat
While eyes firmly were fixed on Switzerland, key economic data showed a more resilient economy than expected in the third quarter, after the final reading of US GDP was revised upwards to a two-year high. The annual rate of GDP growth for the June-September quarter was unexpectedly adjusted to 4.4% from the initial reading of 4.3%, coming in at the fastest rate since the third quarter of 2023.
Meanwhile, other data showed that US personal spending increased 0.5% in November to an annualised $21.41trn, in line with October's growth rate and matching economists' predictions.
The PCE price index, the Federal Reserve's preferred inflation gauge, rose by 0.2% in both October and November, as did core PCE, with both measures in line with estimates.
Lastly, initial weekly jobless claims inched 1,000 higher to 200,000 over the week ended 17 January, coming in below the 212,000 consensus forecast, while the four-week moving average fell to its lowest level in two years.
P&G, GE Aerospace and WBD in focus
Consumer products giant Procter & Gamble put in decent gains after keeping its full-year forecasts despite a mixed second-quarter earnings report. Quarterly profits beat analysts' estimates, while revenues disappointed as three of its five product categories posted lower volumes.
Shares in GE Aerospace slid despite comments from the aviation group that it has started 2026 with "solid momentum" on the back of robust demand and a spike in earnings. The company underwhelmed despite reporting a 74% surge in orders in its fourth quarter.
Warner Bros Discovery edged lower as the takeover battle between Paramount Skydance and Netflix dragged on. Paramount on Thursday extended the deadline for its hostile takeover as it attempts to convince WBD shareholders to vote against the studio's recommended sale of its movie and streaming business to Netflix. Paramount gained, while Netflix fell into the red.
Social network titan Meta rose strongly after Jefferies named the company as a top pick, keeping a 'buy' rating, highlighting the stock's weakness since its last results as a buying opportunity.
Dow Jones - Risers
3M Co. (MMM) $160.63 3.05%
Salesforce.Com Inc. (CRM) $228.09 2.94%
Procter & Gamble Co. (PG) $149.93 2.65%
American Express Co. (AXP) $368.02 2.34%
Travelers Company Inc. (TRV) $278.48 2.14%
Unitedhealth Group Inc. (UNH) $354.47 1.93%
Microsoft Corp. (MSFT) $451.14 1.58%
Amgen Inc. (AMGN) $347.07 1.01%
Cisco Systems Inc. (CSCO) $74.33 0.87%
Verizon Communications Inc. (VZ) $39.48 0.61%
Dow Jones - Fallers
Merck & Co. Inc. (MRK) $109.18 -1.74%
International Business Machines Corporation (CDI) (IBM) $294.67 -0.96%
Home Depot Inc. (HD) $381.03 -0.94%
Dow Chemical Co. (DOW) $28.33 -0.28%
Coca-Cola Co. (KO) $71.87 -0.19%
Chevron Corp. (CVX) $166.66 -0.04%
S&P 500 - Risers
Arista Networks Inc. (ANET) $138.41 8.74%
CenturyLink Inc. (LUMN) $8.92 6.32%
Northern Trust Corp. (NTRS) $153.12 6.02%
Meta Platforms Inc. (META) $647.63 5.66%
Autodesk Inc. (ADSK) $269.77 4.79%
Albemarle Corp. (ALB) $188.32 4.59%
Intuit Inc. (INTU) $547.69 4.34%
ONEOK Inc. (OKE) $78.56 3.61%
Akamai Technologies Inc. (AKAM) $97.03 3.53%
Global Payments Inc. (GPN) $75.94 3.53%
S&P 500 - Fallers
Abbott Laboratories (ABT) $108.61 -10.04%
McCormick & Co. (MKC) $61.20 -8.05%
General Electric Co. (GE) $295.00 -7.38%
Huntington Bancshares Inc. (HBAN) $17.64 -6.02%
Dollar Tree Inc (DLTR) $126.79 -4.63%
Apache Corp. (APA) $25.55 -3.73%
Comerica Inc. (CMA) $94.97 -3.67%
ProLogis (PLD) $126.67 -3.41%
Macy's Inc. (M) $20.54 -3.16%
CF Industries Holdings Inc. (CF) $89.23 -2.86%
Nasdaq 100 - Risers
Meta Platforms Inc. (META) $647.63 5.66%
Autodesk Inc. (ADSK) $269.77 4.79%
Intuit Inc. (INTU) $547.69 4.34%
Tesla Inc (TSLA) $449.36 4.15%
JD.com, Inc. (JD) $30.00 3.20%
Expedia Group Inc. (EXPE) $279.66 2.98%
Workday, Inc. (WDAY) $188.18 2.60%
Asml Holdings N.V. (ASML) $1,395.00 2.57%
Vodafone Group Plc ADS (VOD) $13.94 2.50%
Paypal Holdings Inc (PYPL) $57.15 2.25%
Nasdaq 100 - Fallers
Dollar Tree Inc (DLTR) $126.79 -4.63%
Ross Stores Inc. (ROST) $187.01 -2.76%
Synopsys Inc. (SNPS) $509.47 -2.39%
Netflix Inc. (NFLX) $83.54 -2.13%
CSX Corp. (CSX) $35.78 -2.05%
KLA-Tencor Corp. (KLAC) $1,500.00 -1.32%
Cintas Corp. (CTAS) $193.07 -1.20%
Broadcom Inc. (AVGO) $325.49 -1.01%
Microchip Technology Inc. (MCHP) $75.47 -0.96%
Monster Beverage Corp (MNST) $80.89 -0.87%
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