In the early morning of January 23 Beijing time, the three major U.S. stock indexes closed higher collectively. The Dow Jones Industrial Average rose for the second consecutive day, completely erasing Tuesday’s losses, and market risk appetite rebounded significantly. By the close, the Dow Jones Industrial Average gained 0.63% to 49,384.01 points, the Nasdaq Composite Index climbed 0.91% to 23,436.02 points, and the S&P 500 Index advanced 0.55% to 6,913.35 points. The VIX (Volatility Index) plummeted 15.88% to 16.90, indicating a stabilization in market sentiment.

The market showed a pattern of synchronized gains in large and small-cap stocks. The small-cap stock index outperformed the S&P for the 15th consecutive trading day, hitting a new stage high. The tech sector emerged as the core driver, with the Bloomberg Magnificent Seven Index jumping over 2%. Meta surged 5.66%, recording its largest single-day gain since July. Tesla rose more than 4% on news of Robotaxi testing, while Microsoft and Amazon both gained over 1.3%. Chinese concept stocks also strengthened in tandem, with the Nasdaq Golden Dragon China Index up 1.58%. BrainRegen Tech and Burning Rock Biotech soared 42% and 32% respectively, and Alibaba climbed over 5%.

The rebound was fueled by eased geopolitical tensions. After Trump revoked tariffs related to Greenland, market risk-averse sentiment faded, and bargain-hunting buying continued to pour in. Institutions stated that U.S. stocks have returned to a reasonable valuation range after a correction. Coupled with a stable labor market and strong economic data, the short-term rebound momentum is expected to continue.