Published & Updated: January 23, 2026 | Tapbit Global Markets & Policy Desk
U.S. stock markets rallied strongly on January 22, 2026, after President Trump announced a framework deal on Greenland with NATO allies, effectively backing off from threatened tariffs on several European countries. The S&P 500 surged 1.16% to near record highs, the Dow Jones Industrial Average jumped 1.2% (adding 550–600 points), and the Nasdaq Composite gained 1.18%. Positive U.S. economic data further fueled the optimism: Q3 GDP growth came in robust at 4.4%, while inflation cooled to 2.8% YoY, reinforcing expectations that the Federal Reserve would maintain steady interest rates through mid-2026. This combination of geopolitical de-escalation and solid macro figures triggered a classic risk-on rotation, benefiting equities and spilling over into crypto markets. This article summarizes the key drivers, market performance, broader implications, and how Tapbit traders can position for continued momentum or hedge remaining risks.
Market Snapshot – January 23, 2026
| Index / Metric | Current Level | Daily Change | Key Note |
|---|---|---|---|
| S&P 500 | Near record highs | +1.16% | Best daily gain in 2 months |
| Dow Jones Industrial Average | — | +1.2% (550–600 points) | Strong rebound from tariff fears |
| Nasdaq Composite | — | +1.18% | Tech-led recovery |
| Q3 GDP Growth | 4.4% | — | Robust expansion beats expectations |
| Inflation (YoY) | 2.8% | — | Cooling supports Fed hold |
| Fed Policy Rate Outlook | Steady | — | No immediate cuts or hikes |
Trump’s Tariff Reversal Sparks Rally
The announcement of a framework deal on Greenland with NATO allies led to the immediate cancellation of threatened tariffs, easing geopolitical tensions that had pressured markets earlier in the week. The deal includes expanded U.S. access to Greenland’s resources and strategic sites, avoiding a potential trade war with Europe. This de-escalation triggered a sharp risk-on rotation, with investors piling back into equities.
- Trump’s statement: “Framework achieved – no tariffs needed on our European partners.”
- European response: Relief from Denmark and other NATO members, stabilizing trade relations.
- Market reaction: Reversal from Tuesday’s sell-off, with stocks recovering losses in hours.
Positive U.S. Economic Data Fuels Investor Optimism
Robust Q3 GDP growth of 4.4% (beating estimates) and cooling inflation at 2.8% YoY reinforced the narrative of a resilient U.S. economy. These figures suggest the Fed can maintain steady rates without aggressive cuts, supporting corporate earnings and stock valuations.
- GDP drivers: Consumer spending, tech investment, export growth.
- Inflation trends: Energy prices stable, core PCE below 2.5%.
- Fed implications: Rate hold likely at next meeting, pausing QT.
Implications for Crypto Markets
The stock rally spilled over to crypto, with Bitcoin stabilizing near $90,000 and Ethereum showing relative strength. Reduced geopolitical risk and steady Fed outlook improve sentiment for risk assets, though BTC remains below recent highs.
- Crypto correlation to equities: ~0.6–0.7 (Nasdaq influence strong)
- Potential upside: Lower tariff fears → higher risk appetite → BTC toward $92K–$94K
- Watch: If Fed signals cuts, could boost both stocks & crypto
Tapbit Trading Strategies Amid the Rally
- Create your Tapbit account (0% maker fees)
- Deposit USDT via P2P or card
- Spot momentum: Accumulate BTC/ETH on pullbacks to $89,500 / $2,950
- Futures continuation: Long BTC/USDT perpetuals on break above $91,650 (20–50x leverage, isolated margin)
- Risk-on rotation: Long higher-beta alts (SOL, XRP) vs BTC if rally sustains
- Risk control: Max 1–2% account risk per trade; trailing stops mandatory
Conclusion
The U.S. markets’ strong rally — S&P +1.16%, Dow +1.2%, Nasdaq +1.18% — following Trump’s tariff reversal and positive economic data (Q3 GDP 4.4%, inflation 2.8% YoY) signals renewed investor optimism and a potential shift back to risk-on mode. For crypto traders, this could mean upside spillover if Fed holds steady.
Trade the risk-on rally on Tapbit:
Disclaimer: This article is for informational purposes only and does not constitute investment or trading advice. Financial markets are highly volatile and subject to geopolitical & macroeconomic events. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
