While US President Donald Trump’s tariff threats over Greenland dominated the narrative for broader equity markets last week, investors were hedging risks elsewhere.
Only three weeks into 2026, the market pattern is similar to last year: Trump makes threats, markets start to show signs of upset then, as the tension de-escalates over a few days, stocks resume a grind higher.
For volatility markets, it’s an all-too familiar quick spike and reversal: The Cboe Volatility Index jumped Tuesday, then quickly retreated to below the level from the previous Friday, with the futures curve ending the week in an almost identical shape. ...