The U.S. stock market rebounded significantly after President Trump announced a framework deal for Greenland and withdrew threatened tariffs on European countries, easing investor worries.
The U.S. stock market experienced a significant rebound on Wednesday, with the S&P 500 rallying 1.2%, following President Donald Trump's announcement of a framework deal regarding Greenland and his decision to withdraw threatened tariffs on several European countries. This positive news came after the market's worst day since October. Trump's de-escalation of rhetoric, where he stated he would not use force to take Greenland, helped ease investor anxieties. The Dow Jones Industrial Average and Nasdaq composite also saw gains of 1.2% each, and Treasury yields eased, signaling reduced worries. The U.S. dollar also recovered some losses. Trump acknowledged the previous day's market dip related to Greenland but downplayed it, predicting future growth. The article notes Trump's pattern of making threats that cause market slides, only to later pull back and strike deals, giving rise to the 'TACO' (Trump Always Chickens Out) acronym. In company news, Halliburton and United Airlines saw gains after reporting better-than-expected profits. Conversely, Netflix dropped due to slowing subscriber growth and a low profit forecast, while Kraft Heinz fell after Berkshire Hathaway indicated potential interest in selling its stake. Globally, markets were mixed, with Japan's Nikkei 225 slipping amid concerns over a snap election and rising government bond yields.
