Stocks Rally After Trump Backs Off Greenland Tariffs
U.S. stock indices rebounded broadly after President Trump suspended threatened Greenland-related tariffs on European countries, lifting equities, easing Treasury yields and reducing trade-driven market anxiety.
Overview
President Trump announced he would not impose previously threatened Greenland-related tariffs on several European countries, prompting immediate market relief and a reclaiming of roughly half Tuesday's S&P losses.
S&P 500, Dow and Nasdaq each rose about 1.2% Wednesday; the Russell 2000 climbed 2%, as Treasury yields eased and Japanese bond yields softened.
Indexes regained part of Tuesday's sharp sell-off; S&P recovered roughly half its prior-day decline while week-to-date and year-to-date performances remained mixed across benchmarks.
Corporate earnings influenced sector moves: Halliburton and United Airlines rose after stronger profits, while Netflix fell despite profit beat as subscribers slowed and guidance disappointed.
European leaders planned an emergency European Council meeting to discuss retaliation if tariffs were imposed; Trump's reversal may ease prospect of multi-billion-dollar countermeasures.
Analysis
Center-leaning sources frame markets’ moves as reactions to President Trump's tariff threats, using evaluative verbs ('rattled,' 'whipsaw,' 'roller-coaster') and prioritizing geopolitical friction and market metrics. Editorial choices highlight Trump-linked volatility while often underplaying broader economic context (strong data), and quotes are presented as source content but are curated to reinforce instability.
Sources (13)
FAQ
President Trump threatened tariffs to pressure European countries, particularly Denmark, to sell Greenland to the United States, viewing it as a strategic necessity for security.
The tariffs targeted eight European countries: Denmark, France, Germany, United Kingdom, Netherlands, Norway, Sweden, and Finland.
U.S. stocks rallied, with the S&P 500, Dow, and Nasdaq each rising about 1.2%, the Russell 2000 climbing 2%, recovering roughly half of Tuesday's losses.
The European Parliament suspended work on a U.S.-EU trade agreement and paused ratification processes in response to the threats over Greenland.
A 10% tariff was set to begin on February 1, 2026, escalating to 25% on June 1, 2026, if no deal for Greenland's purchase was reached.
History
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