Overview
- At Davos, President Donald Trump ruled out using force to acquire Greenland and later said a NATO-linked ‘framework’ allowed him to retract tariffs that had been set to start on Feb. 1.
- U.S. stocks reversed much of the prior day’s slide, with the Dow, S&P 500 and Nasdaq up about 1.1%–1.2%, Treasury yields eased, the dollar steadied, and gold cooled from record highs.
- European institutions paused work on a U.S.-EU trade deal and scheduled an emergency summit, signaling ongoing diplomatic friction despite the tariff rollback.
- Key details of the Greenland arrangement remain unclear, and allies offered mixed signals, with NATO’s Mark Rutte saying Greenland’s status did not come up in his discussion with Trump.
- By Thursday, global equities pushed higher again as investors priced out immediate trade or military escalation while keeping some safe-haven positions intact.