US Equity Indexes Rebound, Long-Dated Treasury Yields Drop After Trump Eases Tone Over Greenland

02:04 PM EST, 01/21/2026 (MT Newswires) -- US equity indexes rose in midday trading on Wednesday after President Donald Trump ruled out using force to take control of Greenland, helping push long-dated government bond yields lower.

The Nasdaq Composite rose 0.2% to 23,004.3, with the S&P 500 up 0.5% to 6,830.1 and the Dow Jones Industrial Average 0.6% higher to 48,799.9.

All but three sectors, consumer staples, utilities, and real estate, advanced. Energy, health care, and materials led the gainers.

The US will not use force to take over Greenland, adding that acquiring the Danish territory "would not be a threat to [North Atlantic Treaty Organization]," President Donald Trump said in his World Economic Forum speech in Davos, Switzerland. He, nevertheless, said the US needs to take control of Greenland for security reasons, and not for its minerals, according to media reports.

The European Parliament's trade committee postponed a vote on the European Union's previously signed trade deal with the US amid President Trump's tariff threats and demands to acquire Greenland. The vote was initially set for Jan. 26 and 27.

Meanwhile, Trump appeared on course for a setback at the Supreme Court on Wednesday over his move to fire Fed Governor Lisa Cook, according to a BBC news report. Justice Brett Kavanaugh, a conservative appointed by Trump, was among the justices to express sympathy with Cook's arguments, asking, "What's the fear of more process here?"

Gold futures advanced 1.4% to $4,831.2, while silver futures fell 2.1% to $92.61.

US Treasury yields were mixed, with declines concentrated in the mid to long-term maturities. The 10-year Treasury yield fell 2.6 basis points to 4.28%, with the 20- and 30-year yields declining 2.9 and 2.6 basis points, respectively.

The pull-back in US long-dated Treasuries was also influenced by its counterparts in Japan.

The 30-year Japanese government bond yield fell 15 basis points on Wednesday, a reversal of only about half of Tuesday's move, according to a note from MUFG. The 20-year yield dropped 10.2 basis points. Japan won't finance additional tax cuts through bond issuance, Finance Minister Satsuki Katayama said from Davos, Switzerland, on Wednesday.

In company news, Kraft Heinz (KHC) filed a prospectus supplement to register the resale of up to 325.4 million of its shares held by Berkshire Hathaway (BRK.A) under an agreement dating back to 2015. Shares of Kraft slumped 6%, the steepest decline on the S&P 500 and the Nasdaq.

BNP Paribas Exane adjusted its price target on Western Digital's (WDC) shares to $250 from $170, while maintaining its outperform rating. Shares of Western Digital (WDC) jumped 8%, among the biggest gainers on the S&P 500.

Netflix (NFLX) reported stronger-than-expected Q4 results, but the streaming giant's Q1 outlook fell short of Wall Street's estimates. Its shares dropped 4.2%.

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