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U.S. Stocks Rebound After Trump Scraps Greenland Tariff Plan

The retreat, delivered after Davos remarks, signaled de-escalation that eased volatility.

Overview

  • The S&P 500, Dow and Nasdaq each rose about 1.2% to 6,875.62, 49,077.23 and 23,224.82, respectively, recovering roughly half of Tuesday’s slide.
  • President Trump said on Truth Social he reached a Greenland deal 'framework' and would not impose the Feb. 1 tariffs on several European countries, reversing the threat that rattled markets.
  • At the World Economic Forum, Trump dismissed the prior session’s drop as 'peanuts' and said he would not use force in pursuit of Greenland.
  • Tech and large caps led the rebound, with Intel surging about 10%–12%; value sectors such as energy also advanced, and the Russell 2000 gained about 2% to a record close.
  • Risk gauges eased as the VIX fell back near 17 and Treasury yields ticked lower, while futures edged higher after the close against a backdrop of solid recent GDP growth near 4.3%.