Wall Street exhibited tentative stabilization on Wednesday as investor nerves settled following President Trump’s clarification that he would not employ military force to acquire Greenland. This statement helped the market recoup a fraction of the substantial losses incurred during the previous session’s sell-off, which was triggered by the geopolitical uncertainty surrounding the proposal.
The S&P 500 index advanced 0.3%, edging closer to its recent all-time peak after a 2.1% plunge on Tuesday. The Dow Jones Industrial Average climbed 200 points (0.4%), while the Nasdaq composite registered a more modest 0.1% gain. The calming of tensions was also reflected in the bond market, where the yield on the 10-year Treasury note retreated slightly to 4.28% from 4.30%.
Corporate earnings emerged as a primary market driver, providing pockets of strength. Halliburton surged 3.6% after the oilfield services giant delivered quarterly profits that surpassed analyst expectations. United Airlines ascended 3.5% following a similarly robust earnings report and optimistic revenue guidance from CEO Scott Kirby for 2026.
However, not all corporate news was positive. Netflix shares tumbled 4.8% as investor focus shifted from its profit beat to concerns over decelerating subscriber growth. Kraft Heinz faced even steeper losses, plummeting 6.6% after Berkshire Hathaway signaled a potential divestiture of its massive 325-million-share stake, a move compounded by recent board resignations and a major write-down.
Underlying anxieties persisted, evidenced by a 1.9% rally in gold, which breached $4,800 per ounce for the first time. Market participants continued to monitor the implications of proposed 10% tariffs on several European nations and evolving fiscal policies in Japan, where Prime Minister Sanae Takaichi’s snap election call sent government bond yields to record levels amid expectations for expansive tax cuts and spending.