Tech Powers Early Strength as Greenland Fears Ease
Published as of: January 22, 2026, 9:13 a.m. ET
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| The markets | Last price | Change | % change |
|---|---|---|---|
| S&P 500® index | 6,875.62 | +78.76 | +1.16% |
| Dow Jones Industrial Average® | 49,077.23 | +588.64 | +1.21% |
| Nasdaq Composite® | 23,224.82 | +270.50 | +1.18% |
| 10-year Treasury yield | 4.26% | +0.01 | -- |
| U.S. Dollar Index | 98.62 |
-0.13 |
-0.13% |
| Cboe Volatility Index® | 15.94 | -0.96 | -5.68% |
| WTI Crude Oil | $59.72 | -$0.90 | -1.48% |
| Bitcoin | $89,620 | -$600 |
-0.68% |
(Thursday market open) After switching gears yesterday on easing geopolitical concerns, Wall Street powered higher again this morning amid tech strength as investors mulled a full helping of economic data, with more on the way.
Today's key data point is the November Personal Consumption Expenditure (PCE) price index, due at 10 a.m. ET. Annual PCE remains stubbornly above the Federal Reserve's 2% goal and could reinforce ideas that a rate cut isn't in the cards at the Fed's meeting next week. Chances were 5% heading into PCE, according to the CME FedWatch Tool. In data before the open, the government's final third quarter gross domestic product (GDP) estimate rose to 4.4% from 4.3% on a seasonally adjusted annual basis, while initial jobless claims of 200,000 met expectations. Both numbers suggest economic vitality.
Stocks posted sizzling gains Wednesday as political drama receded on both sides of the Atlantic. President Trump arrived in Europe and pledged not to use armed forces in Greenland. Later, he rescinded his threats of related tariffs on NATO countries, saying he'd reached a "framework" agreement. Back home, Supreme Court justices sounded skeptical of Trump's effort to fire Fed Governor Lisa Cook. The Court's decision has major implications for Fed independence, and some of Wednesday's strength in stocks and bonds might have reflected easing worries over the ruling, expected later this year.
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Three things to watch
- Japan bond market not in crisis: The other development that upended U.S. stocks and Treasuries earlier this week may also be more bark than bite, as Japan's yields pulled back Wednesday after the recent sell-off (yields rise when the underlying bond falls). Investors might want to keep an eye on developments there ahead of the early February election, but Tokyo has tools to calm the market if needed. "Ultra-long term Japanese government bond yields have risen but that doesn't mean it's a crisis," said Michelle Gibley, director of international equity research and strategy at the Schwab Center for Financial Research (SCFR). "Fiscal spending concerns have risen ahead of the February 8 election in Japan's lower house of parliament, but longer duration Japanese Government Bond, or JGB, markets have low liquidity, which can result in outsized moves. Notably, the yen has not mirrored the volatility in JGBs this week." The Bank of Japan (BoJ) issues its decision late tonight, U.S. time, and is unlikely to change interest rates. Still, the BoJ could issue hawkish language and support the yen, Gibley said.
- Tech seen benefiting if geopolitical jitters persist: The "broadening" trade was the story earlier this month and late last year when many investors shifted from tech to sectors like materials and financials. Small caps also flourished. This trend had a healthy effect on the stock market, taking the percentage of S&P 500 stocks trading at or above their 50-day moving average to around 70% a week ago. When more stocks across multiple sectors exhibit strength, it suggests a balanced rally not so dependent on mega caps and their huge market capitalization. That faded during Tuesday's sell-off, as the number of stocks trading at or above their 50-day moving averages fell to 62%. Things calmed Wednesday, but it's unclear if the market is out of this particular neck of the woods. "With uncertainty back on the rise, money may flow back to mega-cap tech," said Nathan Peterson, director of derivatives research and strategy at SCFR. Whether this gains steam could depend on tech earnings that begin in a major way next week following Intel (INTC) later today.
- Day begins with tech strength: Intel climbed 1% early ahead of its post-close earnings data. Shares soared nearly 12% yesterday amid little news but possibly as investors anticipated results. Last time it reported, Intel exceeded Wall Street's revenue estimates and said it expected fourth quarter revenue of $13.3 billion. Last year, Intel received a $5 billion investment from Nvidia (NVDA), and the U.S. government took a stake in the company, which helped send shares to recent four-year highs. Strength from Intel and an analyst upgrade of Arm Holdings (ARM) spilled into more tech names late this week, including Advanced Micro Devices (AMD), Western Digital (WDC), and Nvidia. The PHLX Semiconductor Index (SOX) climbed 3% yesterday. Many tech shares rallied this morning before the bell, including CoreWeave (CRWV), Palantir (PLTR), Arm Holdings, and Super Micro Computer (SMCI).
On the move
- Micron (MU) jumped 2% early Thursday after William Blair initiated coverage with an outperform rating.
- Procter & Gamble (PG) fell less than 1% after delivering earnings that topped analysts' estimates but revenue that fell short amid declining demand for some of its consumer products.
- GE Aerospace (GE) dipped slightly despite earnings and revenue beating estimates on Wall Street amid strong demand for jet engines. The stock is up about 70% over the last year, indicating some of the good news may have been priced in.
- Abbott Laboratories (ABT) dropped 5% in early action Wednesday after the medical devices maker's quarterly revenue missed analysts' estimates, though earnings per share topped the average Wall Street expectation.
- Freeport McMoRan (FCX) fell more than 1% after the mining company beat analysts' quarterly earnings and revenue expectations. The firm said it's positioned to provide additional supplies of copper to a growing market. Shares had risen sharply heading into quarterly results.
- Alphabet (GOOGL) added 1.8% in early trading as Raymond James upgraded shares to strong buy from outperform. The firm now sees improved 2027 revenue based on its Google Cloud Platform and Search.
- Moderna (MRNA) climbed another 4% this morning after yesterday's nearly 16% rally. This came after the company and Merck (MRK) said five-year data showed their cancer vaccine helped reduce the risk of relapse or death for melanoma patients, Barron's reported.
- The small-cap Russell 2000® Index (RUT) outpaced the S&P 500 index for the 13th straight session Wednesday, the longest stretch since June 2008. Strength in small caps can reflect positive investor sentiment about the domestic economy.
- Natural gas futures (/NG) climbed another 9% this morning, adding to sharp recent gains related to a massive Arctic cold front about to park itself over much of the Midwestern and Eastern U.S. Demand is expected to rise dramatically even as supplies slide. Natural gas companies including EQT (EQT), Cheniere Energy (LNG), and Kinder Morgan (KMI) climbed early Thursday.
- Crude oil (/CL) fell below $60 per barrel as geopolitical tensions eased.
- The S&P 500 index fell under its 50-day moving average of 6,829 early this week, the first dip below that since mid-December, before clawing back Wednesday to close above it. From a chart perspective, that may be positive. "Technicals remain bullish, but we did see the largest one-day drop since October, so sentiment is likely a little rattled," my colleague Peterson said.
- The benchmark 10-year Treasury note yield climbed slightly to 4.26% after this morning's initial strong data, still well above its long-term 4% to 4.2% range. "I believe longer-term yields have more upside than downside," said Cooper Howard, director of fixed income research and strategy, SCFR. Consider watching yields today after PCE data for the market's first take on the numbers.
- Bitcoin (/BTC) inched lower early Thursday and appeared to be losing its hold on $90,000.
- The Cboe Volatility Index (VIX) slipped almost 5% early Thursday as geopolitical tensions eased, falling back toward 16. That's still higher than recent lows below 14 late last year.
More insights from Schwab
D.C. update: Congress is racing to pass six appropriations bills before the January 30 deadline as it tries to avoid another shutdown, wrote Michael Townsend, managing director of legislative and regulatory affairs, Schwab, in his latest Washington: What to Watch Now column. "The timing is tight, but not impossible," he said.
" id="body_disclosure--media_disclosure--542896" >D.C. update: Congress is racing to pass six appropriations bills before the January 30 deadline as it tries to avoid another shutdown, wrote Michael Townsend, managing director of legislative and regulatory affairs, Schwab, in his latest Washington: What to Watch Now column. "The timing is tight, but not impossible," he said.
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Chart of the day
Data source: Cboe, S&P Dow Jones Indices. Chart source: thinkorswim® platform.
Past performance is no guarantee of future results.
For illustrative purposes only.
The five-year weekly chart above compares the S&P 500 index (SPX—candlestick) to the 10-year Treasury note yield (TNX:CGI—purple line). The periods in late 2022 and late 2023 when the yield climbed above 4.5% coincided with weak S&P 500 performance, and stocks took another spill early last year after the yield hit 4.8%, though that drop also reflected tariff fears. Since last spring, the 10-year yield has been relatively stable and stocks have climbed, but recent yield turbulence could be causing new caution.
The week ahead
Check out the investors' calendar for a summary of the top economic events and earnings reports on tap this week.
January 23: Expected earnings from Booz Allen Hamilton (BAH) and Ericsson (ERIC). University of Michigan consumer sentiment survey final results for January.
January 26: Expected earnings from Baker Hughes (BKR), Steel Dynamics (STLD), and WR Berkley (WRB)
January 27: Consumer confidence, new home sales and expected earnings UnitedHealth Group (UNH), Boeing (BA), American Airlines (AAL), General Motors (GM), United Parcel Service (UPS), Northruop Grumman (NOC), Kimberly-Clark (KMB), HCA Healthcare (HCA), and RTX Corp (RTX), Seagate Technology (STX), and Texas Instruments (TXN).
January 28: Federal Reserve policy decision, and expected earnings from Microsoft (MSFT), Meta (META), Tesla (TSLA), IBM (IBM), Lam Research (LRCX), ASML Holding (ASML), AT&T (T), Amphenol (APH), Corning (GLW), GE Vernova (GEV), General Dynamics (GD), Raymond James (RJF), Starbucks (SBUX), Danaher (DHR), Progressive (PGR), Lennox (LII), Teva Pharmaceuticals (TEVA), Textron (TXT), and United Microelectronics (UMC).
January 29: November factory orders and expected earnings from Mastercard (MA), Caterpillar (CAT), SAP SE (SAP), Lockheed Martin (LMT), Altria (MO), Comcast (CMCSA), Apple (AAPL), Visa (V), Western Digital (WDC), and SandDisk (SNDK).