US stocks close higher, Dow gains nearly 600 points

US stocks closed higher at the end of session on Jan. 21, recouping a large portion of losses in the previous session driven by escalating trade and geopolitical tensions, after remarks by US President Donald Trump on Greenland.

The Dow Jones Industrial Average rose 1.20%, or 588 points, to close at 49,077.

The S&P 500 gained 1.15%, or 78 points, to 6,875, while the Nasdaq Composite advanced 1.20%, or 270 points, to 23,224.

The Wall Street “fear gauge,” the VIX—which measures expected volatility over the next 30 days—fell by more than 15% to around 17 points, after having exceeded the 20-point threshold separating expectations of stability from turbulence on Tuesday.

In Europe, the STOXX Europe 600 closed little changed at 602.67 points.

Germany’s DAX fell 0.6% to 24,560 points, while France’s CAC rose 0.1% to 8,069 points, and the UK’s FTSE gained 0.11% to 10,138 points.

In Japan, the Nikkei 225 slipped 0.4% to 52,774 points, extending losses for a fifth consecutive session, while the broader Topix index declined 1% to close at 3,589 points.

In oil markets, March futures for Brent crude rose 0.50%, or 32 cents, to $65.24 per barrel.

Meanwhile, March futures for Nymex crude—the most active contract—gained 0.4%, or 26 cents, to $60.62 per barrel.

In precious metals, February futures for gold climbed 1.50%, or $71.7, to $4,837.50 per ounce, marking a record closing level, after prices touched $4,891.10 during the session.

What’s driving markets? After a turbulent session on Jan. 20, investor concerns eased following an announcement by President Trump that he had reached a framework agreement regarding Greenland, alongside the cancellation of tariffs that were set to be imposed on some European countries.

At the same time, the US Supreme Court warned the Trump administration against undermining the independence of the Federal Reserve, amid claims it is advancing to dismiss Lisa Cook from the central bank’s board of governors without judicial review.