Dow, S&P 500 Eye Weekly Losses Despite Tariff Threat Reversal

• Trump initially threatened tariffs on countries opposing Greenland's sale, then reversed position saying he would 'prefer not to have to use tariffs' while citing a 'framework of a future deal'
• Several major companies disappointed markets post-earnings: 3M, Netflix, GE Aerospace, and Capital One all declined despite some beating estimates, due to margin concerns and weak guidance
• Gold and rare earth mining stocks rallied on geopolitical uncertainty, with SPDR Gold Trust (GLD) seeing heavy options activity as gold prices set new records

Market Summary: Weekly Losses Loom Despite Tariff Reversal

Market Performance:

U.S. major indices headed toward weekly losses as of Friday, January 23, 2026, despite President Trump's reversal on tariff threats. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite experienced their worst session since October following initial tariff announcements related to Greenland disputes.

Key Political Developments:

Trump initially threatened tariffs against countries opposing Greenland's sale but softened his stance at the World Economic Forum in Davos, stating he would prefer to acquire Greenland through negotiation. Danish Prime Minister Mette Frederiksen rejected sovereignty negotiations but remained open to talks. Markets rebounded modestly on the tariff rhetoric softening but closed mixed on disappointing economic data.

Corporate Earnings:

Several major companies faced post-earnings declines:

• 3M (MMM) fell despite Q4 earnings beat due to weak full-year profit guidance
• Netflix (NFLX) dropped on margin and buyout concerns
• GE Aerospace (GE) tumbled despite upbeat Q4 results and strong forecast
• Capital One Financial (COF) declined after announcing plans to acquire startup Brex for $5.15 billion

Commodities and Sector Focus:

Gold prices hit record highs amid safe-haven demand and geopolitical tensions. Options activity surged in SPDR Gold Trust (GLD). Rare earth mining stocks MP Materials (MP) and USA Rare Earth (USAR) rallied on tariff-related concerns. Copper miner Freeport-McMoRan (FCX) also gained attention.

Looking Ahead:

The Federal Reserve's interest rate decision is scheduled for next week, accompanied by major earnings reports from American Airlines, Boeing, Chevron, Dow, ExxonMobil, IBM, JetBlue, Meta, Microsoft, RTX, Tesla, and Western Digital.