US stocks fluctuate due to geopolitical tensions.

A turbulent week for Wall Street.

A turbulent week for Wall Street.

The US stock market experienced a volatile week, reflecting investors' sensitivity to geopolitical risks.

After closing for a holiday on Monday (January 19), the trading week began with a shock on January 20 as major indices fell sharply. The S&P 500 recorded its worst single-day decline since October 2025, after US President Donald Trump unexpectedly announced he would impose new tariffs on European countries that oppose his attempts to control Greenland.

However, market sentiment reversed dramatically in the following two sessions. On January 21st, Wall Street recorded its strongest single-day gain in two months after President Trump announced that a "framework for a future deal" had been reached on Greenland and that he would not impose the planned tariffs. The upward momentum continued on January 22nd as investors welcomed the fact that the US and Europe had avoided a potential trade war.

By Friday (January 23), the market had become quieter as investors took time to digest the price surge of the previous two days and awaited important events in the coming week.

According to Carl B. Weinberg, head of research at the consulting firm High Frequency Economics, the past week was a testament to President Trump's "break down - fix - declare victory" strategy. While the market has recovered, Weinberg warns that no real problems have been solved and more disruptive events are likely in the future.

In terms of economic data, the past week also brought positive signals. The Bureau of Economic Analysis (BEA) revised its forecast for US Gross Domestic Product (GDP) growth in the third quarter of 2025 from 4.3% to 4.4%. Employment data also showed that the country's labor market remains stable, with the number of unemployment benefit claims remaining low. However, inflation remains a concern, with the core Personal Consumption Expenditures (PCE) price index for November 2025 remaining high, rising 2.8% year-on-year and exceeding the Fed's 2% target.

Chứng khoán Mỹ trải qua tuần chao đảo vì căng thẳng địa chính trị - Ảnh 1. — Next week promises to be a crucial test for the market - Photo: THX

Next week's important test

Next week promises to be a crucial test for the market, with two key events: the Federal Reserve meeting and the earnings reporting season for major technology stocks.

The Fed is expected to keep interest rates unchanged at its January 27-28 meeting, but investors will scrutinize the central bank's policy statement for clues about the future interest rate trajectory. Economists surveyed by Bloomberg predict the Fed may only cut interest rates in June and September of this year.

Meanwhile, earnings reporting season will enter its peak with results from tech giants like Apple, Microsoft, and Meta Platforms. According to asset management firm Resonate Wealth Partners, these earnings reports could be a crucial catalyst, given that many stocks in the "Magnificent Seven" (Apple, Microsoft, Amazon, Alphabet, Meta Platforms, Tesla, and Nvidia) have underperformed the S&P 500 over the past 12 months.

Overall, despite facing geopolitical pressures, the US stock market remains near record highs. According to Morgan Stanley, if those political risks ease, positive sentiment regarding key market themes this year – such as the Fed's policy outlook, the AI craze, and the resilience of the US economy – will have a chance to re-emerge.

Source: https://vtv.vn/chung-khoan-my-chao-dao-vi-cang-thang-dia-chinh-tri-100260124145925672.htm