Traders work as U.S. President Donald Trump appears on a screen speaking at the World Economic Forum (WEF) meeting in Davos, Switzerland, on January 21, 2026, in the chamber of the New York Stock Exchange (NYSE) in New York City, USA.
Brendan McDiarmid | Reuters
Stocks have soared since Wednesday after President Donald Trump said a framework for a deal on Greenland had been agreed upon and halted new tariffs on Europe.
Stocks had already risen after the president earlier said in a speech at the World Economic Forum in Davos, Switzerland, that he would not use force to acquire Greenland.
of Dow Jones Industrial Average It soared 588 points (1.21%). of S&P500 rose by 1.16%, but Nasdaq Composite It increased by 1.18%. Even taking into account the day’s gains, the three major indexes are still in the red for the week. The Dow Jones Industrial Average is on track to decline 0.6%, while the S&P 500 and Nasdaq are each expected to decline about 1% for the week.
“Based on a very productive meeting with NATO Secretary-General Mark Rutte, we formed the framework for a future agreement regarding Greenland, and indeed the entire Arctic region,” President Trump wrote on Truth Social. “Based on this understanding, I will not impose the tariffs that were scheduled to take effect on February 1,” he said.
The so-called “Sell America” trade that hit financial markets on Tuesday reversed on Wednesday. Following President Trump’s suspension of tariffs, 10-year bond prices began to rise and yields fell. of us dollar index What you earn in other currencies.
Things like tech stocks Nvidia and AMD It led the market’s return as investors started returning to favorite growth stocks after a sluggish start to the week. Bank stocks also rose after the president said in a speech in Davos that he would ask Congress to implement his proposal to cap credit cards at 10%, but the outlook is uncertain given the lack of support among lawmakers. citygroup and capital one Each rose about 1%.
“President Trump is very unpredictable and changes direction quickly. The stock market is no longer assuming that what he says will be executed,” Jed Ellerbrook, a portfolio manager at Argent Capital Management, told CNBC. “If investors actually believed this was a major geopolitical rift in the fight with Europe over Greenland, the stock market would have fallen even more than the 2% it did yesterday.”
The threat of tariffs had heightened tensions even after President Trump said there would be no military action against Greenland. Early Wednesday morning, European lawmakers suspended the European Union’s trade deal with the United States, agreed in July, amid ongoing tariff tensions over Greenland. President Trump announced over the weekend that he would impose 10% tariffs on products from eight NATO countries starting February 1, pending a deal to purchase Greenland, and then increase the tariffs to 25% on June 1.
In his Truth Social post, President Trump added, “Once completed, this solution will be a great solution for the United States and all NATO countries.”
Stocks fell sharply in the previous trading day as President Trump escalated his threat of tariffs on Greenland and failed to rule out military use to seize territory controlled by Denmark. All three benchmark indexes posted their worst daily performance since October 10th. This decline also pushed the S&P 500 and Nasdaq into negative territory in 2026.
Tuesday’s “Sell America” trade was accompanied by a sharp rise in U.S. Treasury yields and a decline in the U.S. dollar. of 10 year government bond yield The price soared, and at one point reached a high of more than 4.3% on the day.
Treasury Secretary Scott Bessent told reporters Wednesday at Davos that the Trump administration was “not concerned” about the decline in the previous session.
Back in Washington, Supreme Court justices expressed skepticism about whether President Trump has the authority to fire Federal Reserve President Lisa Cook. During oral arguments Wednesday, Justice Brett Kavanaugh told Trump administration lawyers that arguing that the president could fire Cook without judicial review would “undermine, if not shatter, the independence of the Federal Reserve Board.”
