Greenland Relief Rally Ignites Tech as Trump Nears Fed Decision
U.S. futures are surging following a landmark 'framework deal' regarding Greenland, effectively dismantling the threat of retaliatory tariffs against Europe. Markets are pivoting aggressively toward risk-on assets, further fueled by President Trump's imminent announcement of a new Federal Reserve Chair.
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Greenland Relief Rally Ignites Tech as Trump Nears Fed Decision
U.S. futures are surging following a landmark 'framework deal' regarding Greenland, effectively dismantling the threat of retaliatory tariffs against Europe. Markets are pivoting aggressively toward risk-on assets, further fueled by President Trump's imminent announcement of a new Federal Reserve Chair.
Historical Seasonality
Historically, January's third week (Jan 15-21) has been prone to high volatility and tech liquidations, notably the 2022 'Netflix Crash.' However, 2026 is bucking the trend as geopolitical de-escalation overrides seasonal cooling.
The Greenland 'U-Turn' & Trade Policy
The removal of the Greenland-related tariff overhang has triggered a massive short-covering rally in global trade-exposed sectors. Semiconductors are leading the charge, with the SOXX rallying while the inverse $SOXS has plummeted -5.8%. This pivot shifts the market narrative from trade-war defensiveness to growth-oriented buying. Investors are now laser-focused on the vetting process for the next Fed Chair, led by Bessent and Lutnick, which is expected to provide further clarity on the 2026 interest rate trajectory.
Alpha Flow: Biotech and Materials Outperform
Despite mixed earnings from staples like $ABT and $MKC, institutional flow is concentrating in high-conviction growth. Materials remains the strongest sector, supported by names like $ALB and $SQM. In the Biotech space, $RVMD carries a top Alpha Signal with an institutional target of $140, driven by significant call-buying activity. Meanwhile, $MRNA is seeing explosive momentum, surging +15.8% on breakthrough melanoma vaccine data, signaling a broader 'risk-on' appetite in the healthcare sector.
Smart Money Moves
Skyrocketing +15.8% on high volume following clinical optimism for its melanoma vaccine and 2026 pipeline outlook.
Dumping -5.8% as the broader semiconductor sector rallies on the removal of trade tariff threats.
Materials sector standout, gaining a massive +127.55% as penny-stock momentum returns to the risk-on environment.
Trading lower by -3.5% after lukewarm guidance in its medical products division overshadowed the broader market rally.
Analyst Actions
Catalyst Watch
- •Q3 GDP (QoQ) Report - 7:30 AM (Consensus: 4.3%)
- •Initial Jobless Claims - 7:30 AM
- •Crude Oil Inventories - 9:30 AM
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