Stock Market Today, Jan. 22: Markets Surge Again Today After Greenland Tariffs Are Dropped

The S&P 500 (SNPINDEX:^GSPC) rose 0.54% to 6,912.54, the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 0.91% to 23,436.02, and the Dow Jones Industrial Average (DJINDICES:^DJI) added 0.63% to 49,384.00 as tariff fears eased and risk appetite firmed.

Market movers

FuelCell Energy (NASDAQ:FCEL)and Enphase Energy (NASDAQ:ENPH) jumped 6.10% and 12.54%, respectively, on relief over scrapped Greenland-linked tariffs, while strength in Meta Platforms (NASDAQ:META) and a rebound in Tesla (NASDAQ:TSLA) helped extend the Nasdaq’s tech-led advance.

What this means for investors

Yesterday’s news that President Trump agreed to a framework for a deal related to Greenland and U.S. security kept stocks rising today. With new European tariffs at least temporarily back off the table, investors jumped back into equities today.

November personal consumption expenditures (PCE) data was also released today, showing tame inflation readings. That could help justify lower interest rates.

Clean energy names were particularly strong today, as the relief on new tariffs removed a major overhang. Investors should remain cautious, though, as many renewable energy names still face an uphill battle with a U.S. administration that has vociferously opposed the sector at times.

Long-term investors should stay the course and not react to any Trump headline-driven snapback. There are likely more to come, but short-term noise shouldn’t be the main force to drive investment decisions.

Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Meta Platforms and Tesla. The Motley Fool recommends Enphase Energy. The Motley Fool has a disclosure policy.