US stocks rose after President Donald Trump called off new European tariffs, saying a tentative deal had been reached on Greenland.
Shares were already rising after the president said earlier in a speech at the World Economic Forum in Davos, Switzerland, that he would not use force to take over Greenland.
The Dow Jones Industrial Average rose 588.64 points, or 1.21%, to end at 49,007.23. The S&P 500 rose 1.16% to close at 6,875.62, while the Nasdaq Composite advanced 1.18% to close at 23,224.82. Even with the daily gains, the three leading indexes are still in the red for the week. The Dow Jones is headed for a 0.6% decline, while the S&P 500 and Nasdaq are on track for weekly declines of around 1%.
“Based on the very productive meeting I had with NATO Secretary General Mark Rutte, we have formed the framework for a future agreement regarding Greenland and, indeed, the entire Arctic region,” Trump wrote on Truth Social. “Based on this understanding, I will not impose the tariffs that were supposed to take effect on February 1.”
Shortly after that announcement, Trump told CNBC that “we have a concept agreement” with Greenland.
Following Trump’s suspension of tariffs, the so-called “sell America” trade, which hit financial markets on Tuesday, reversed itself on Wednesday, SEEbiz reports. The price of 10-year Treasuries rose and the yield fell, and the US dollar index rose against other currencies.
Technology stocks such as Nvidia and AMD led the market’s comeback as investors returned to their favorite growth stocks after a lull earlier in the week.
