New York, January 21, 2026, 10:21 EST — Regular session
The Dow Jones Industrial Average rose in early trade on Wednesday, clawing back some ground a day after a sharp selloff, after President Donald Trump said he would not use force to acquire Greenland. At 9:38 a.m. ET, the Dow was up 203.56 points, or 0.42%, at 48,692.15. “That’s a sigh of relief,” said Art Hogan, chief market strategist at B Riley Wealth. 1
The move matters because Tuesday’s drop jarred investors who had come into the week leaning long, with trade policy suddenly back in the driver’s seat. The Dow fell 870.74 points, or 1.8%, on Tuesday, while the S&P 500 slid 2.1% and the Nasdaq dropped 2.4%, the Associated Press reported. Long-term Treasury yields rose at the same time, adding pressure on stocks. 2
Reuters reported Trump’s weekend warning of fresh tariffs on eight European countries did the damage, pulling all three main U.S. indexes to their biggest one-day drop in three months. He said additional 10% import tariffs would take effect on Feb. 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, rising to 25% on June 1 until a deal is reached for the U.S. to purchase Greenland. “I’d be surprised if there was a 3% to 5% drop this week,” said Jamie Cox, managing partner at Harris Financial Group. 3
Within the Dow, the early lift leaned on healthcare, with Merck up $1.70 (1.6%) and UnitedHealth up $4.82 (1.4%), together adding roughly 40 points to the index, MarketWatch said. Walt Disney, Nike and Chevron also helped, according to the same data. 4
Tuesday’s downdraft had a different look: 3M fell $11.62 (6.9%) and IBM dropped $12.67 (4.1%), trimming roughly 150 points from the Dow, MarketWatch reported. The Dow is price-weighted, meaning higher-priced shares swing the index more; every $1 move in a component equals about 6.16 points. 5
Politics is still hanging over the tape. The U.S. Supreme Court began hearing arguments on Wednesday over Trump’s bid to fire Federal Reserve Governor Lisa Cook, a case that could test how insulated the central bank is from the White House. 6
Rate expectations are also shifting. A Reuters poll found economists now expect the Fed to hold its key rate at 3.50%-3.75% through this quarter, after many had expected at least one cut by March a month ago. “The economic outlook on the surface suggests the Fed should remain on hold,” said Jeremy Schwartz, a senior U.S. economist at Nomura. 7
Earnings are feeding the cross-currents. United Airlines issued an upbeat outlook for the current quarter and the full year on strong demand from higher-income and corporate travelers; “Our results are built on winning more and more brand-loyal customers,” CEO Scott Kirby said. 8
Deal headlines are doing the rest. Netflix switched to an all-cash offer for Warner Bros Discovery’s studio and streaming assets, a move backed by the Warner board in a regulatory filing; “A cash bid strips away uncertainty,” Matt Britzman, senior equity analyst at Hargreaves Lansdown, said. 9
But the rebound has a short fuse. If tariff threats flare again or bond yields resume their climb, traders could treat Wednesday’s bounce as a reset rather than a turn.
Next up is inflation. The BEA’s next release of the Personal Consumption Expenditures price index — the Fed’s preferred inflation gauge — is due on Jan. 22, a data point that can quickly reprice rate bets and, by extension, the Dow’s appetite for risk. 10
