The "Greenland" De-escalation: Much of the recent jitters came from President Trump's surprise tariff threats against European countries over the Greenland dispute. Those threats were largely withdrawn at the World Economic Forum in Davos, providing a massive relief valve for international trade sentiment.
Yen Intervention: Japan and the U.S. have been signaling coordinated efforts to support the yen. This "intervention chatter" has stabilized the currency markets, cooling off a period of intense volatility for exporters.
The "Gold" Standard: Gold has officially shattered the $5,000 mark for the first time in history today. While that’s technically a "fear" indicator (investors rushing to safe havens), the fact that it has found a level at around $5,090 suggests that the initial panic of the surge has settled into a steady, if expensive, new reality.
What to Watch This Week
The relief might be short-lived, as the "Quiet Period" usually ends once the big data hits:
The Fed Meeting (Wednesday): Markets are betting the Federal Reserve will hold rates steady, but everyone is listening for hints on whether Chair Powell will give in to Washington's pressure for faster cuts.
Tech Earnings: We are entering a heavy week for Big Tech earnings, which will determine if the AI-driven valuations of 2025 can actually hold up under 2026's fiscal reality.
U.S. Government Shutdown Fears: Tensions in Minneapolis have sparked new threats from Democrats regarding Department of Homeland Security funding, putting a potential shutdown back on the radar. #MarketSentimentToday #Greenland2026
