Stock Market Weekly Recap

The stock market for the week of January 19–23, 2026, has been an absolute rollercoaster, dominated by what traders are calling the “Greenland Volatility.” After a brutal start to the week, markets staged a significant recovery by Thursday as trade tensions showed signs of cooling.

1. Weekly Performance: The “V-Shaped” Headline

The week was split into two distinct halves: a massive “Risk-Off” sell-off followed by a relieved “Risk-On” rebound.

• S&P 500: After suffering its worst day in three months on Tuesday (dropping 2.1%), the index recovered about half of those losses by Wednesday and continued higher on Thursday, currently hovering around 6,876.¹

   

   

• Nasdaq Composite: The tech-heavy index saw even sharper swings, falling 2.4% on Tuesday before bouncing back 1.2% on Wednesday as fears of a total trade war with Europe subsided.²

   

   

• Dow Jones: Jumped nearly 600 points (+1.2%) on Wednesday, recouping much of its early-week losses.³

   

   

2. The Main Catalyst: The “Greenland Tundra”

Market sentiment was almost entirely driven by the diplomatic standoff over the proposed U.S. annexation of Greenland.

• The Sell-off (Mon–Tue): Stocks tanked after President Trump threatened blanket tariffs on eight NATO allies who opposed the Greenland deal.⁴ Investors feared a “Stagflationary shock” that would raise consumer prices and stall global growth.

   

   

• The Recovery (Wed–Thu): Markets rallied after the President shifted rhetoric in Davos, ruling out military force and announcing the suspension of tariffs scheduled for February 1st.⁵ A “framework for a deal” with NATO Secretary General Mark Rutte provided the “relief rally” the market was craving.⁶

   
   

   

3. Sector & Stock Highlights

Despite the macro noise, earnings season provided a backdrop of resilient fundamentals.

• Semiconductors (The Winners): Intel (INTC) and AMD were standout performers, jumping 11% and 7.5% respectively after the trade de-escalation.⁷ Investors are betting that the AI infrastructure build-out remains immune to short-term political drama.

   

   

• Consumer Staples (The Loser): Kraft Heinz (KHC) fell roughly 5.5% this week following news that Berkshire Hathaway may be looking to trim its massive stake.⁸

   

   

• Small Caps: The Russell 2000 continued to outperform large caps for the third week in a row, up nearly 8% YTD, signaling a rotation into domestic-focused companies that are less exposed to international tariff wars.

4. Commodities: Gold and Natural Gas Explode

While stocks were volatile, the “Hard Asset” market saw historic moves.

• Gold (XAU/USD): Briefly touched record highs near $4,900/oz as investors rushed for safety during the tariff scare.⁹

   

   

• Natural Gas: Prices surged 60% in a record-breaking two-day gain as a brutal “Arctic Blast” froze much of the United States, driving heating demand to extreme levels.¹⁰

   

   

5. Summary Table: Index Snapshots (Jan 22, 2026)

💡 The Takeaway

The lesson of the week: “Don’t trade the threat; trade the resolution.” Institutional investors used the Tuesday dip as a massive buying opportunity, betting that the fundamental “AI Supercycle” and stable 2026 earnings growth are more powerful than temporary tariff headlines.