^DJI Today January 23: Dow Rises Again as Greenland Tariff Risk Fades
Dow today advanced for a second straight session as risk eased after a pause on Greenland-linked tariffs. A steady 2.8% PCE inflation reading kept rate-cut hopes intact while attention shifted to Big Tech earnings, led by Intel. For Canadians, firmer U.S. equities supported global risk appetite and added tailwinds to TSX cyclicals. We also watched Dow futures for cues into tomorrow’s open. Below, we break down drivers, the Canada angle, a simple technical view, and practical steps for portfolios.
Why stocks bounced: politics, inflation, and earnings
The market welcomed a pause on Greenland-linked tariffs. With that shock reduced, investors rotated back into cyclicals and tech. U.S. benchmarks rose for a second day, signaling improving sentiment and tighter spreads. Gains were broad, though leadership stayed with large caps. See coverage of the rebound from major outlets like Yahoo Finance to track moves and sector flow.
A 2.8% PCE inflation print supported the view that disinflation is not derailing. That kept hopes alive for gradual U.S. policy easing later this year. Lower-for-longer yields support equity multiples, helping the Dow today and growth shares. The setup pushed investors to re-risk ahead of earnings, with a focus on execution from megacap tech and balance between value and growth.
Canada lens: TSX, currency, and sector implications
Canadian stocks climbed alongside the Dow today, with banks and energy helping the S&P/TSX Composite. Domestic coverage highlighted the second day of gains after the tariff walkback, improving risk appetite across North America. For details on the local move and sector color, see CP24. Cross-border correlation stayed high as U.S. tech strength lifted sentiment.
A firm Canadian dollar can trim translated returns on U.S. holdings, even when the Dow today rallies. Investors with unhedged U.S. equity ETFs should weigh currency drift in RRSP or TFSA accounts. Exporters may prefer a stable or softer loonie, while importers benefit from strength. Consider partial currency hedges if your portfolio skews heavily to U.S. earnings.
Earnings watch: Intel and Big Tech catalysts
Investors looked to INTC for signs of AI-driven demand in PCs, servers, and foundry. A clean guide on margins and capex can support chip peers and the Dow today. Apple also matters for hardware demand and services cash flow. Early reads here often shape the week’s tone, especially for tech-weighted ETFs and quality factor funds.
Ahead of prints, we prefer quality balance sheets and consistent free cash flow. Consider core U.S. exposure via broad ETFs, with tilts to semis and software if guidance holds. Keep Canadian banks and energy as ballast for dividends and value. If adding single names, stagger entries around results to reduce gap risk. First mention of Apple: AAPL.
Technical view: momentum, levels, and risk controls
Momentum improved with the Dow today. RSI sits near 65.04, showing firm but not extreme conditions, while ADX around 21.09 signals a developing trend. The MACD histogram is positive, supporting near-term upside. We want follow-through with rising volume and advancing issues. If breadth widens, pullbacks may stay shallow and get bought.
On our charts, price is near upper bands, which often caps first tests before consolidation. The Bollinger upper band sits around 49,500, while the 20-day center line acts as support. Average True Range near 481.83 points flags active swings. For the stock market today, scale entries, predefine stops, and avoid oversized positions into earnings.
Final Thoughts
The market’s tone improved as tariff risk faded, the 2.8% PCE reading steadied rate expectations, and earnings came into focus. That backdrop lifted the Dow today and supported TSX participation, aided by banks and energy. For Canadian investors, our playbook is simple: keep core exposure via broad ETFs, add selective growth where guidance is firm, and use dividends for ballast. Watch Dow futures and the loonie for overnight cues. Into earnings, stagger buys, use stops sized to current ATR, and trim into strength near resistance. If momentum broadens and macro stays stable, pullbacks should offer better entries than exits.
FAQs
Why is the Dow up today?
The Dow today rose for a second straight session as the pause on Greenland-linked tariffs eased geopolitical risk. A steady 2.8% PCE inflation reading kept policy hopes intact, while focus shifted to Big Tech earnings, led by Intel. Together, those drivers improved sentiment and supported a broad, though large-cap led, advance.
How do Dow futures guide the Canadian open?
Dow futures offer a quick read on overnight risk. Positive futures often point to higher TSX opens, especially when tech and financials lead. Still, currency moves, energy prices, and local headlines can change the picture. Use futures as a cue, not a guarantee, and confirm with premarket sector and ETF flows.
Is the rally sustainable from here?
Momentum improved, with RSI near 65 and ADX around 21 suggesting an uptrend building but not extended. Sustainability hinges on earnings quality and guidance. If breadth widens and volumes confirm, dips may hold. A break below the 20-day average would warn of a pause. Manage risk around key prints and levels.
What should Canadian investors watch next?
Track Big Tech results, guidance on AI spend, and U.S. macro updates. For the stock market today and tomorrow, monitor Dow futures, the Canadian dollar, and TSX sector leaders. Use ETF flows for confirmation. In portfolios, balance growth with dividends, and consider partial currency hedges if U.S. exposure is large.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
