U.S. stock markets rose sharply on Wednesday after President Donald Trump announced a “framework of a future deal” concerning Greenland and canceled planned tariffs on Europe. The announcement came just one day after markets fell sharply over concerns about trade tensions.
The Dow Jones Industrial Average jumped 677 points, or 1.4%, around 3:15 p.m. EST. By the close, it was up 589 points, or 1.2%. The S&P 500 and Nasdaq also rose about 1.2%, while the Nasdaq peaked 1.8% higher earlier in the day.
The jump came after uncertainty over Greenland had triggered a market slide on Tuesday. The S&P 500 lost roughly $750 billion as investors worried about potential U.S.-Europe trade conflicts.
Trump had threatened 10% tariffs on Denmark and seven other European countries providing military support to Greenland. The tariffs would have increased to 25% in June if no agreement was reached.
Treasury yields also fell slightly, with the 10-year note dropping to around 4.257%. Analysts said the market rebound reflected relief that the trade threat was removed.
Trump said the Greenland deal puts “everybody in a really good position especially as it pertains to security and minerals and everything else.” He offered few details about the agreement but emphasized a long-term framework.
The president reiterated his interest in Greenland during a speech at the World Economic Forum in Davos, Switzerland, but ruled out using force to acquire the island. Vice President JD Vance and Secretary of State Marco Rubio will continue discussions with European and Greenlandic officials.
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