The latest tariff tantrum in the stock market may have already fizzled. Stocks surged twice on Wednesday. The first move came after President Donald Trump said he would not use military force to take over Greenland. Later in the day, stocks moved higher again, sending leading indexes to session highs, after Trump called off tariffs on eight European countries that had opposed any takeover. Trump had threatened the eight allies over the weekend with new tariffs if a Greenland deal wasn’t reached. Not only did Trump find an ” off-ramp ” for Greenland, but the odds are now high that a near-term low in the S & P 500 has been put in place, according to Mark Newton. “[Wednesday’s] turnaround gives some hope that lows could be in place as Equal-weighted Technology managed to push back to new all-time highs on a daily closing basis, and market breadth proved quite strong at over 3/1 bullish based on Advancers/Decliners,” Fundstrat’s technical strategist wrote to clients. The S & P 500 hit an intraday low of 6,789.05 on Tuesday and closed just north of that mark. Since reaching that level, however, it has risen 1.3%. The benchmark is now less than 2% below its all-time high of 6,986.33. .SPX 5D bar SPX 5-day chart Tech stocks seem to be getting their mojo back as well. The State Street Technology Select Sector SPDR ETF (XLK) has bounced more than 1.5% from Tuesday’s lows. “Seeing a 1% gain immediately following a 1% decline [in the S & P 500] was the kind of price action we had grown accustomed to during the post-tariff tantrum in 2025,” wrote Frank Cappelleri, founder of CappThesis. “Even more significant was [Wednesday’s] 82% advancing stocks, which marked the strongest breadth reading since 11/25.” Some risks still loom over the market, however. First, any Greenland-related deal is far from finalized. And Trump could renew his threats of more tariffs if negotiations don’t go to his liking — rattling investors once again. Newton also admits to a measure of skepticism regarding the recent market low: “There remains more progress needed in order to have real conviction about a bottom being in place.”
Why the stock market may have already left this week’s tariff fears behind
Jan 22, 2026
