Market Flash: Davos Crew Not Happy with Trump

Coverage: January 14-21, 2026

Markets: From Record Highs to a Volatility Check

U.S. equities reversed sharply this week after closing at record levels. On Tuesday, the S&P 500 fell roughly 2% — its worst one-day drop since October — as investors reacted to renewed trade tensions, rising global bond yields, and, of course, Greenland. The selloff was broad, with tech leading declines and volatility spiking above recent ranges.

By Wednesday, markets staged a modest rebound. Stocks recovered over 1% across indices as traders digested remarks from President Trump at Davos, where he softened language around Greenland and tariffs, saying he did “not want to use force.” Volatility eased, but risk appetite remained cautious, with markets appearing more sensitive to headline risk than macro data.

Trade and Geopolitics: Greenland, Tariffs, and Davos

Trade tensions returned to center stage after President Trump threatened new tariffs on several European countries tied to negotiations over Greenland. Speaking at the World Economic Forum in Davos just hours ago, Trump reiterated U.S. interest in the territory but stressed he would pursue it through economic and diplomatic means.

European leaders have been outspoken all this week against Trump’s threats of tariffs. French President Emmanuel Macron warned that Europe would “not give in to bullies,” while EU officials signaled they were preparing retaliatory trade measures if tariffs move forward. 

National Championship: NIL, Age, and a New Model

Indiana held off the Miami Hurricanes 27–21 on Monday night, capping one of the most entertaining and unexpected championship games in recent memory.

Monday night’s College Football National Championship doubled as a case study in structural change. The Hoosier’s Cinderella title run — led by Heisman Trophy winner and potential  first round draft pick, Fernando Mendoza — highlighted how experience and roster construction are reshaping the sport.

The team’s average age exceeded 23, driven by fifth- and sixth-year seniors eligible under COVID-era rules — experience that translated directly into on-field stability. The transfer portal has accelerated that advantage, allowing historically struggling programs like Indiana to compete quickly by prioritizing ready-made contributors. And then you also have Indiana’s massive alumni base (~800,000) that has fueled their NIL endeavors the past several years and helped elevate what **was** historically the worst FBS program ever.