S&P 500 Is Back in the Green for 2026 on Trump Davos Remarks

Julian Emanuel, Chief Equity & Quantitative Strategist at Evercore ISI gives his investment outlook for 2026.

Wall Street traders drove stocks higher after their biggest selloff since October as President Donald Trump said the US doesn’t want to use excessive force to get Greenland. Bond yields fell alongside the dollar.
Following a cross-asset slide dubbed by some as a revival of the “Sell America” trade amid geopolitical risks, more than 400 shares in the S&P 500 advanced. The gauge is back in the green for 2026. Small caps beat the US equity benchmark for a 13th straight day while big tech underperformed the broader market. A closely watched gauge of equity volatility tumbled from its highest since November.
Treasuries bounced after being hit in the previous session. The greenback was poised for its fourth straight day of losses.
It wasn’t so much what President Trump said that mattered as what he didn’t say, according to Brian Jacobsen at Annex Wealth Management. 
“He didn’t reiterate his tariff threat against Europe, He didn’t say the government would use force to get Greenland. He didn’t say he’d cap credit card rates, instead asking Congress to do it,” Jacobsen added. “It felt like a dialing down of the substance even if the style was still pure Trump.”
Trump said he was seeking immediate talks on Greenland, pushing for the US to acquire the Danish territory during an address to the world’s business and political elite in Davos on Wednesday. He cast the US acquisition of Greenland as essential to collective security and downplayed the danger it would pose to NATO. 
The US president also hailed his policies as ushering in an American economic boom and said his agenda offered an example for Europe to follow.
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