The recent tariff tantrum in the stock market may already have subsided. The stock rose twice on Wednesday. The first move came after President Donald Trump said he would not use military force to occupy Greenland. Stocks rose again later in the day, with major indexes hitting record highs after President Trump lifted tariffs on eight European countries that had opposed the deal. Over the weekend, President Trump threatened eight allies with new tariffs if a Greenland deal was not reached. Not only has President Trump found an “exit” to Greenland, but it’s now increasingly likely that a short-term low for the S&P 500 will be set, according to Mark Newton. “(Wednesday’s) turnaround gives us hope that the lows may stick, as Equal Weighted Technology has managed to set new all-time highs on a daily closing price basis, and the market breadth has proven to be very strong, exceeding a bullish 3/1 based on advancers and decliners,” Fundstrat technical strategists said in a letter to clients. The S&P 500 hit an intraday low of 6,789.05 on Tuesday and closed just north of that mark. However, since reaching that level, it has increased by 1.3%. The benchmark is currently less than 2% below the all-time high of 6,986.33. .SPX 5D Bar SPX 5 Day Chart Tech stocks appear to be regaining momentum as well. The State Street Technology Select Sector SPDR ETF (XLK) has rebounded more than 1.5% from Tuesday’s lows. “A 1% decline[in the S&P 500 index]followed immediately by a 1% increase was the kind of price action we were accustomed to during the post-tariff tantrum of 2025,” wrote Frank Cappellelli, founder of Capthesis. “More importantly, the stock price rose 82% (Wednesday), the strongest reading since Nov. 25.”However, there are still some risks looming over the market. First, the Greenland-related agreement is still far from complete. And if negotiations fail, President Trump could renew his threat to impose additional tariffs, again spooking investors. Newton also acknowledged that there is some skepticism about recent market lows, saying, “We still need more progress before we can have any real confidence that the bottom has been reached.”
