New York, January 22, 2026, 10:13 a.m. EST — Regular session
- The Dow climbed in morning trading, building on its rebound following volatile moves earlier this week.
- Investors grappled with postponed U.S. inflation figures alongside new labor-market updates.
- Trade policy headlines continued to drive uncertainty around risk appetite.
The Dow Jones Industrial Average climbed 202.69 points, or 0.41%, to hit 49,279.92 in early trading. The S&P 500 and Nasdaq also moved higher. 1
Wall Street extended its rebound early Thursday, building on Wednesday’s rally fueled by a framework deal on Greenland and the cancellation of looming U.S. tariffs on European allies. “What matters economically is whether we end up imposing tariffs on each other,” said Jason Pride, chief of investment strategy and research at Glenmede. 2
Early in the week, that sensitivity became clear. On Tuesday, the Dow fell 1.76% after traders reacted to new tariff threats linked to Greenland. Proposed extra 10% duties on goods from several European countries are set to kick in February 1. Jamie Cox, managing partner at Harris Financial Group, said he hadn’t yet seen investors pulling back and would be surprised by a 3% to 5% decline over the week. 3
Thursday’s economic data added fresh weight to the market narrative. Initial jobless claims climbed by 1,000 to 200,000 in the week ending January 17, according to Reuters. At the same time, continuing claims dropped 26,000 to 1.849 million. The third-quarter GDP growth was bumped up to an annualized 4.4%. Heather Long, chief economist at Navy Federal Credit Union, commented, “The United States is experiencing a jobless boom.” 4
Inflation figures came in late. The Commerce Department’s Bureau of Economic Analysis reported the Personal Consumption Expenditures price index — the Federal Reserve’s favored inflation gauge — increased by 0.2% in both October and November. The “core” measure, which strips out food and energy, also ticked up 0.2% in each month. On a year-over-year basis, headline and core PCE stood at 2.7% in October and 2.8% in November. 5
Procter & Gamble grabbed headlines after reporting net sales of $22.21 billion, slightly under analysts’ forecasts, though its adjusted profit came in above estimates. Finance chief Andre Schulten noted that “consumers are in periods of less certainty,” highlighting cautious spending habits—even on staples—in some U.S. regions. 6
Traders didn’t see the inflation report as a straightforward signal. The PCE figures, which cover October and November, were delayed due to last year’s government shutdown, making them carry “less weight than usual” ahead of the Fed’s next move, economists and strategists told Investopedia. Brett Ryan, Deutsche Bank’s senior U.S. economist, said officials will probably want “several more months of data” before drawing firmer conclusions on the trends.
The Federal Reserve meeting next week takes center stage, with the policy committee set to convene January 27-28. A press conference follows on January 28. 7
Bulls face a clear danger: a sudden shift in tariff talk could erase recent gains fast. Add any unexpected jump in inflation or interest rates, and valuations—already close to recent peaks—might need a serious reevaluation.
The next major event is the Fed’s rate decision and its commentary on January 28. Traders will be watching closely to see how officials assess inflation and what level of patience they convey following the distorted data caused by the shutdown.
