Finance

S&P 500 Rises 1% as Trump Drops EU Tariff Threat; Fear & Greed Neutral

The S&P 500 jumped 1.16% to 6,875.62 and the Nasdaq rose 1.18% to 23,224.82 as Trump withdrew planned tariffs on the EU after a productive meeting. The Dow climbed about 589 points to 49,077.23, with gains broad across sectors as investors digested earnings and awaited ABT, PG and INTC results.

S&P 500 Rises 1% as Trump Drops EU Tariff Threat; Fear & Greed Neutral

Key Takeaways

  • The S&P 500 rose 1.16% to 6,875.62 and the Nasdaq climbed 1.18% to 23,224.82.
  • All 11 S&P 500 sectors finished higher, led by energy, materials, and healthcare.
  • Netflix fell about 2% on weak Q4 results; Johnson & Johnson beat estimates; ABT, PG and INTC earnings are due.
  • CNN Fear & Greed Index rose to 50.4, remaining Neutral as market sentiment steadies.
  • U.S. pending home sales fell 9.3% in December and construction spending rose 0.5% in October, signaling mixed signals.

People Involved

  • Donald TrumpPresident of the United States
  • Mark RutteDutch Prime Minister

Entities Involved

  • Abbott Laboratories (ABT)Healthcare company
  • Procter & Gamble (PG)Consumer goods company
  • Intel Corp (INTC)Semiconductor company
  • Johnson & Johnson (JNJ)Healthcare company
  • Netflix Inc (NFLX)Streaming video company

MarketMoodz Analysis

The session’s broad rally signals ongoing risk appetite, with a neutral Fear & Greed reading suggesting room for upside without overheating. A softer geopolitical backdrop—per the tariff withdrawal—helps reduce macro-skew risks and keeps attention on earnings and domestic data.

From a historical perspective, a broad-based advance across cyclicals and defensives often accompanies a constructive phase in earnings season, especially when data points like construction spending and housing market activity align with modest growth. Netflix’s deterioration contrasts with J&J’s beat, illustrating a mixed earnings landscape that will keep volatility elevated into key print dates for ABT, PG, and INTC.

What to watch next: monitor ABT, PG, and INTC results for guidance on consumer health, household staples, and semiconductors; track any renewed trade headlines; and watch market breadth to see whether the rally sustains across sectors.

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