Nasdaq and Dow Jones: Can US Indices Finish Volatile Week on a High Note?

Markets Rally as Trump Eases Greenland Tensions

The major U.S. stock indexes posted solid gains on Thursday, following through with the rally that began the previous session when President Trump eased geopolitical concerns over his quest to obtain Greenland by lifting his threat of new tariffs on Europe and the creation of the “framework” for discussions to take over the country.

Strong Performance Across Major Indexes

On Thursday, the benchmark S&P 500 Index climbed 0.55% and ended at 6913.35. The tech-heavy Nasdaq Composite gained 0.91% and settled at 23436.02 and the blue chip Dow advanced 306.708 points, or 0.63% and closed at 49384.01. All three indexes are trying to recover from steep losses on Monday and Tuesday; the Dow is in the best position to turn higher for the week.

Investor Sentiment Rebounds Despite Ongoing Uncertainty

Investor sentiment has been positive since Trump announced his “framework” late Wednesday, but the situation regarding Greenland is far from over. This week’s price action showed that the markets are sensitive to “noise” but with the fundamentals strong, including earnings, the economy and upcoming Fed rate cuts, it also showed investors can find buying opportunities in the noise.

Denmark Signals Openness to Security Talks

Despite the positive outlook, however, the deal for Greenland still faces headwinds. On Thursday, Danish Prime Minister Mette Frederiksen viewed Trump’s discussion on Arctic security with Rutte as “good and natural”, CNBC reported. She also said that Denmark is ready to hold talks with the U.S. on its “Golden Dome” missile defense plan, while stressing that sovereignty is off the table.

Sector Performance: Tech and Consumer Lead, Real Estate Lags

While the broad-based indexes showed a robust performance on Thursday, only seven out of 11 sectors closed positive. The top two performers were Communication Services, up 1.57% and Consumer Discretionary, up 1.22%. Real Estate was the biggest loser, down 1.10%.

Top Movers: Tech Stocks Power Nasdaq Higher

Leading the Nasdaq Composite higher were Datadog (+6.31%), Meta Platforms (+5.66%) and Atlassian Corp (+4.93%). Netflix (-2.13%) continued to slide after releasing earnings on Tuesday.

Leading the Dow higher was 3M (+3.05%), Salesforce (2.94%) and Procter & Gamble (+2.65%), which posted an earnings beat.

Top movers in the S&P 500 Index were Arista Networks (+8.736%), Northern Trust (+6.024%) and Carvana (+5.149%). On the downside, Abbott Laboratories fell 10.039%.

Friday’s Key Levels: Indexes Eye Record Highs

On Friday, investors will be eyeing the Dow (DJI) to see if it can continue to build the rally over last week’s close at 49359.34. Currently, it’s in a position to challenge the record high at 49633.35.

Investors will be watching the S&P 500 Index (SPX) for the reaction at last week’s close of 6940.00. Overcoming this level and turning higher for the week could create the momentum needed to challenge the all-time high at 6986.33.

For the Nasdaq Composite (IXIC), investors will be watching the price action at 23515.39. A sustained move over this level will erase all of this week’s earlier losses, but it could still be challenged by the January 13 top at 23813.30 or the last barrier before the record high at 24019.99.

More Information in our Economic Calendar.