GoAI Market Wrap - 22nd Jan
Stock Market
U.S. major indices closed sharply higher Tuesday Eastern Time after President Trump canceled the new round of tariffs on European countries and announced a “framework agreement” on Greenland, easing global trade war fears.
At close, Dow Jones +1.21% to 49,077.23, S&P 500 +1.16% to 6,875.62, Nasdaq +1.18% to 23,224.82.
Trump spoke at the World Economic Forum in Davos, Switzerland, stating he would not use force to acquire Greenland.
He later posted on Truth Social: “Following a very productive meeting with NATO Secretary General Mark Rutte, we have reached a framework agreement on Greenland—and indeed the entire Arctic region. Based on this understanding, I will not proceed with the tariffs originally set to take effect on February 1.”
Trump added that Vice President JD Vance, Secretary of State Marco Rubio, and others will handle the Greenland negotiations, which will include discussions on the “Golden Dome” missile defense project.
Last Saturday, Trump had announced tiered tariffs starting at 10% on February 1 and rising to 25% on June 1 against imports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland unless a “full and complete purchase” of Greenland is agreed.
The previous day’s sell-off—triggered by Trump’s escalation of the Greenland tariff threat and refusal to rule out military force—had marked the worst single-day performance for the major indices since October 10.
Trump’s reversal once again validated the so-called “TACO trade” (Trump Always Chickens Out).
Argent Capital Management portfolio manager Jed Ellerbroek said: “President Trump is highly unpredictable and changes course extremely quickly. The market no longer assumes his statements will be implemented. If investors truly believed a Greenland conflict with Europe would escalate into a major geopolitical rift, the market drop would have been far worse than yesterday’s 2%.”
Global Hotspots
Trump: Framework Agreement Reached on Greenland’s Future Cooperation — Tariffs Paused
President Trump posted on Truth Social that, following his meeting with NATO Secretary General Mark Rutte, the U.S. and NATO have agreed on a framework for future cooperation on Greenland and the broader Arctic region. If finalized, it would benefit the U.S. and all NATO members. Trump said the tariffs originally set for February 1 will not proceed.
He noted Vice President Vance, Secretary of State Rubio, envoy Steve Witkoff, and others will lead the negotiations.
Company News
Apple Plans to Transform Siri into Its First Chatbot in Second Half of 2026
Apple will upgrade Siri into its first chatbot product launching in the second half of 2026. Codenamed “CAMPOS,” it will rely on Google’s Gemini model and debut in June. Apple is considering running the chatbot directly on Google Cloud using TPU chip technology.
Musk: Cybercab and Optimus Initial Production Will Be “Extremely Slow”
Musk said Tuesday that initial production of Cybercab robotaxis and Optimus humanoid robots will be “extremely slow” before gradually ramping up. Cybercab is a two-seater with no steering wheel or pedals. The EV maker previously said Cybercab mass production is planned for 2026, with Optimus “potentially” starting mass production by the end of 2026.
Musk Reportedly Wants SpaceX IPO by July, Aims to Be First to Put Data Centers in Space
Media reports citing sources say Elon Musk is aggressively pushing for SpaceX’s IPO, targeting completion by July this year.
Since the AI boom began in 2023, big tech firms have poured billions into data centers. Musk and Blue Origin founder Jeff Bezos have floated the idea of placing data centers in space.
Despite major technical challenges and skepticism from engineers, Musk is reportedly obsessed with making SpaceX the first to achieve this. An IPO is seen as necessary to fund such an endeavor.
Sources say Musk also views a SpaceX IPO as a way to help his AI company xAI catch up to rivals.
Forex & Commodities
WTI February crude futures settled at $60.62/barrel, +0.43%; Brent March crude futures settled at $65.24/barrel, +0.49%.
COMEX gold futures +1.48% to $4,836.2/oz; COMEX silver futures −1.78% to $92.955/oz.
Key Events
IEA Raises Global Oil Demand Forecast but Warns of Persistent Oversupply
The International Energy Agency (IEA) said in its closely watched monthly report Wednesday local time that it has raised its forecast for global oil demand growth due to improved economic outlook and lower crude prices.
However, it warned that oversupply will persist in the coming period, sufficient to offset any potential disruptions from geopolitical risks.
Cryptocurrency (24h change)
Bitcoin +1.16% to $89,907.31.
Ethereum +1.97% to $3,013.91.
XRP +2.46%, BNB +1.08%, Solana +2.20%, Dogecoin +1.60%, Cardano +3.00%.
Crypto Key Event
Institutional Basis Arbitrage on Bitcoin ETFs Cools; CME Futures Open Interest Declines
As the spot-futures basis in Bitcoin narrows, institutional basis arbitrage trades via spot Bitcoin ETFs have cooled markedly, reflecting shifts in crypto derivatives market structure. Data shows Bitcoin futures open interest on CME has fallen from its peak to below $10 billion, dipping below Binance for the first time since 2023.
The change stems from shrinking basis and annualized yields, plus higher transaction costs, reducing the appeal of ETF-futures arbitrage—rather than a broad institutional exit from crypto.