Stock indexes rallied on Wednesday with the S&P 500, Dow Jones, and Nasdaq all closing up over 1%. President Trump’s deal with NATO on Greenland and a promise to refrain from imposing tariffs on European goods boosted markets. Lower bond yields also contributed to the recovery. Gold prices hit a new record high amid the Greenland crisis.

Natural gas prices surged over 24% to a 6-week high due to an Arctic cold front approaching the eastern US, increasing heating demand. US MBA mortgage applications rose 14.1%, while pending home sales fell 9.3% in December. Construction spending rose 0.5% in October.

The market’s focus is on economic news, tariff developments, the next Fed Chair, and Greenland. Q4 earnings season is underway, with positive results so far. The Supreme Court did not rule on Trump’s reciprocal tariffs. Odds of a rate cut at the FOMC’s next meeting are at 5%.

Overseas markets had mixed results on Wednesday. US stock movers included chip makers like Intel and AMD, natural gas-producing stocks like EQT Corp, and software companies like Progressive Software. Earnings reports for January 22 include companies like Abbott Laboratories, Intel, and Procter & Gamble.

Read more at Nasdaq: Stocks Settle Sharply Higher as President Trump Claims Deal on Greenland