The U.S. stock market rebounded sharply after President Trump announced a framework deal for Greenland and retracted tariff threats against European countries, easing investor concerns and recovering from previous losses.
The U.S. stock market experienced a significant rebound on Wednesday, recovering from its worst day since October, following President Donald Trump's announcement of a deal framework concerning Greenland and his decision to withdraw previously threatened tariffs on several European nations. The S&P 500 rallied 1.2%, the Dow Jones Industrial Average jumped 588 points (1.2%), and the Nasdaq composite climbed 1.2%. This de-escalation of tensions helped the S&P 500 recover over half of its 2.1% drop from the previous day. Treasury yields also eased, signaling reduced investor worries, a sentiment further supported by a calming in Japan's bond market. Trump acknowledged the prior day's market dip related to his interest in Greenland, dismissing it as 'peanuts.' The article notes Trump's historical pattern of making significant threats that initially send financial markets sliding, only to later pull back and reach deals, a phenomenon sometimes referred to as 'Trump Always Chickens Out' (TACO). On the corporate front, Halliburton and United Airlines saw gains after reporting stronger-than-expected profits, while Netflix dropped due to slowing subscriber growth and a lower profit forecast. Kraft Heinz sank after Berkshire Hathaway indicated potential interest in selling its stake. The S&P 500 closed at 6,875.62, the Dow at 49,077.23, and the Nasdaq at 23,224.82. The 10-year Treasury yield eased to 4.25%. International markets showed mixed movements, with Japan's Nikkei 225 slipping amid concerns over a snap election and its potential impact on government debt.
