Market Commentary

For the week ending 1/23/2026

 

U.S. stock markets experienced a very volatile week driven primarily by geopolitical tensions regarding Greenland and related tariff threats, which initially caused sharp declines, before a tentative resolution led to a strong rebound toward the end of the week. Major U.S. stock market indexes had only very slight losses at the end of this volatile week.

The primary market driver was President Trump’s announcement that he would implement a new round of tariffs on European nations amid a dispute over Greenland, which caused stocks to fall sharply on Tuesday. Throughout the weekend, Trump continued to demand that the U.S. must control Greenland for national security reasons. Europe has been weighing its options on how to respond to Trump’s newest threats, including retaliatory tariffs and wider economic countermeasures against the U.S. This set up some tense meetings at the annual World Economic Forum in Davos, Switzerland last week.

Wednesday morning President Trump gave his scheduled speech at the Davos forum, in which he emphasized the need for the U.S. to control Greenland, but then said he “won’t use force” to acquire Greenland. Then Wednesday afternoon, Trump said his meeting with NATO Secretary General Mark Rutte yielded a “framework of a future deal” for Greenland, and Trump also said the US would hold off on imposing new tariffs on the EU. He said the deal would secure Greenland’s rare-earth mineral rights for the US. With the worst-case scenario off the table, global markets then staged a significant relief rally.

All that mid-week uncertainty led to a rally in the commodity market. Gold and silver prices both hit fresh all-time highs, reflecting the status as a safe-haven asset during times of political volatility. Oil prices also saw a slight increase due to continued supply concerns. However, the commodity with the biggest price swing this week was natural gas, as prices soared 60% higher due to a severe arctic blast and major winter storm forecasts that have dramatically increased the demand for home heating throughout the U.S.

Last week marked the beginning of the Q4 earnings season, with mixed reports from major companies including Netflix, 3M, United Airlines, Johnson & Johnson, and Intel. These reports and outlooks offered some stock specific movements, though the overall market direction was largely dominated by the broader geopolitical news.

Investors also processed some mostly positive economic data. Weekly initial and continuing jobless claims came in below expectations. The final reading on third quarter GDP was slightly above consensus. November’s PCE inflation data was in-line with expectations at an annualized 2.8%. This healthy data underscores the ongoing resilient consumer narrative.

Last week’s volatility underscores the significant influence of geopolitical events and policy announcements on investor sentiment. Despite a mid-week dip on Tuesday, the markets showed impressive resilience with a strong recovery for the rest of the week once trade tensions eased.

Easing geopolitical tensions, positive earnings outlook, and steady labor market and inflation data leave the market on firmer footing as it heads into this week’s slate of high-profile mega-cap earnings.

For the week, the S&P fell -0.4% to 6,916, the tech-heavy Nasdaq dipped -0.1% to 23,501 and the blue-chip Dow slid -0.5% to 49,099.

Oil rose 2.7% to $61.07/bbl., Gold rose 8.4% to $4,980/oz. and the yield on the Ten-Year Treasury held steady at 4.24%.

IMPORTANT DISCLOSURE INFORMATION

Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Winch Advisory Services, LLC [“Winch]), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, no portion of the foregoing content serves as the receipt of, or a substitute for, personalized investment advice from Winch. Neither Winch’s investment adviser registration status, nor any amount of prior experience or success, should be construed that a certain level of results or satisfaction will be achieved if Winch is engaged, or continues to be engaged, to provide investment advisory services. Winch is neither a law firm, nor a certified public accounting firm, and no portion of the commentary content should be construed as legal or accounting advice. A copy of the Winch’s current written disclosure Brochure and Form CRS discussing our advisory services and fees continues to remain available upon request or at www.winchfinancial.com. PLEASE REMEMBER: If you are a Winch client, please contact Winch, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. PLEASE ALSO REMEMBER to advise us if you have not been receiving account statements (at least quarterly) from the account custodian