How actions taken by President Trump and Nvidia CEO Jensen Huang at Davos benefited investors who bought the dip

Trump’s Davos Speech Calms Volatile Markets

President Trump attempted to reassure investors after the stock market tumbled on renewed concerns over tariffs. Speaking at the World Economic Forum in Davos, he delivered a characteristically bold address, criticizing Federal Reserve Chair Jerome Powell for being slow to lower interest rates and hinting that his successor would be male.

Trump also announced intentions to restrict institutional purchases of single-family homes, though he offered an apology to billionaire attendees like Blackstone CEO Steve Schwarzman, whose company could be impacted by such measures.

Notably, Trump clarified that he would not resort to force in an attempt to acquire Greenland, a territory he has previously dismissed as “just a piece of ice.”

This reassurance helped ease market anxieties, with investors interpreting his comments as a sign that he would not escalate his tariff threats against Europe.

By the time of reporting, all major U.S. stock indexes were trading higher. The Dow Jones Industrial Average led with a 0.6% increase, and investors flocked back to high-growth stocks like AMD and Google.

Highlights from Davos

Jensen Huang, founder and CEO of Nvidia, addressed the World Economic Forum, sharing his optimism about the surge in demand for skilled workers and lucrative salaries in the AI sector. He predicted that the current AI boom would drive the largest infrastructure expansion in history, involving investments worth trillions of dollars.

Huang also dismissed concerns about an AI bubble, emphasizing the sector’s long-term potential.

Nvidia founder and CEO Jensen Huang speaks during the Annual Meeting of the World Economic Forum in Davos, Switzerland, Wednesday, Jan. 21, 2026. (AP Photo/Markus Schreiber)

Trump’s direct approach appeared to please many investors, with Kenny Polcari of Kace Capital Advisors noting the president’s clarity. Victoria Fernandez of Crossmark Global Investments agreed that Trump’s assurance regarding Greenland helped calm the markets, at least temporarily.

Market Recovery After Steep Losses

The positive tone at Davos stood in stark contrast to the previous day, when the Dow, S&P 500, and Nasdaq all suffered significant declines. Investors had sought safety in assets like gold, while Bitcoin dropped below $90,000.

Tariff Threats Still Loom

Over the weekend, Trump warned of a 10% tariff on goods from eight European nations, with the rate set to rise to 25% by June unless the U.S. gains control of Greenland. The proposed tariffs target major trading partners such as the UK and Germany, following Trump’s earlier threats to take control of Greenland without European approval.

Victoria Fernandez cautioned that investors should remain alert to further tariff-related headlines, anticipating continued volatility in market indicators like the VIX and MOVE. She noted that while headline risk has diminished since Trump’s speech, certain sectors, such as Staples, were still underperforming.

For now, investors seem content with the market’s rebound.