NEW YORK, January 22, 2026, 13:54 (EST) — Regular session.
- The Dow climbed roughly 1% by midday, buoyed as tariff concerns faded and data signaled steady growth.
- Investors digested a strong yet manageable inflation report alongside a labor market that remains resilient.
- Strength in earnings from household staples and healthcare stocks added to the day’s choppy trading.
The Dow Jones Industrial Average climbed 518.63 points, or 1.05%, to 49,594.73 by 12:33 p.m. ET, pushing Wall Street higher after President Donald Trump eased off threats related to Greenland and scrapped tariff threats against eight European nations. The S&P 500 and Nasdaq also nudged up, with the dollar weakening and gold recovering from earlier drops.
The Dow jumped 588.64 points, or 1.21%, on Wednesday after Trump announced on Truth Social he wouldn’t move forward with tariffs set for Feb. 1, following a Greenland framework deal. The blue-chip index has been acting like a gauge of market sentiment on Washington’s next steps. “What is the economic impact is whether we all start imposing tariffs on each other,” said Jason Pride, chief of investment strategy & research at Glenmede. Reuters
Thursday’s data gave the rally a more solid footing. Consumer spending climbed 0.5% in November, matching October’s increase. The personal consumption expenditures price index — the Fed’s favored inflation measure — rose 0.2% for the month and 2.8% year-over-year; core PCE inflation also held steady at 2.8% annually. The Commerce Department noted that October and November’s combined data was delayed by a 43-day government shutdown and warned of distortions in inflation figures due to missing CPI inputs. The December PCE report is set for release on Feb. 20.
The labor market data remained broadly supportive. Initial jobless claims inched up by 1,000, landing at a seasonally adjusted 200,000 last week. Meanwhile, continuing claims dropped to 1.849 million. The third-quarter GDP growth was also revised higher, hitting a 4.4% annual rate. Heather Long, chief economist at Navy Federal Credit Union, described the situation as a “jobless boom,” noting strong growth alongside “almost no hiring.” Reuters
Corporate earnings carried much of the market’s momentum today. Procter & Gamble climbed after topping profit forecasts, despite sales falling just short of estimates. The company also lowered its tariff-related cost forecast to around $400 million. CFO Andre Schulten noted brand volumes are back on the rise, while CEO Shailesh Jejurikar called the environment “challenging” due to consumer trends and geopolitical tensions. Reuters
Abbott shares fell after the company forecasted 2026 profits below Wall Street estimates. CEO Robert Ford cited rising costs and prices that “suppressed demand,” warning that the next few quarters could stay under pressure. Bernstein’s Christian Moore noted the infant formula segment still carries “a negative aura,” despite Abbott’s operations not being directly hit by recent troubles affecting competitors. Reuters
Industrial stocks caught the spotlight as GE Aerospace projected adjusted earnings per share of $7.10 to $7.40 for 2026, beating analyst forecasts. The boost comes as airlines ramp up maintenance spending, pressured by limited aircraft supply. CEO Larry Culp described the company’s position heading into 2026 as having “solid momentum.” Reuters
Risk appetite showed signs of improvement compared to earlier in the week. The small-cap Russell 2000 climbed to a new record high, while the CBOE Volatility Index (VIX), often dubbed Wall Street’s “fear gauge,” eased down. Megacap tech stocks drove much of the upside. Traders dusted off the “TACO” acronym — standing for “Trump Always Chickens Out” — to capture the rebound after tariff threats lost steam. Dustin Thackeray of Crewe Advisors described it as “the TACO trade follow on from yesterday.” Reuters
Still, the risk of policy whiplash is clear. On Tuesday, the Dow plunged 870.74 points, or 1.76%, after Trump threatened new tariffs targeting China and eight NATO allies. Markets also took his Greenland comments as a sign he might escalate economic pressure; the VIX spiked above 20. If tariffs come back into play, investors will soon find out whether this week’s calm was just a breather.
Investors are set to focus on Intel’s earnings released after the bell for clues on enterprise demand and tech spending trends. Attention will also turn to the Fed’s January 27-28 meeting, where officials may signal how long interest rates will hold steady if inflation remains stubborn.
