Dow surges 700 points after Trump announces Greenland framework, calls off tariff threat

President Trump sent Wall Street cheering, with the Dow soaring more than 700 points after he announced he has a “framework of a future deal with respect to Greenland” and won’t impose tariffs on Europe.

In late day trading, the blue-chip Dow Jones Industrial Average climbed 1.6% to 49,252. The S&P 500 gained 1.6%, and the Nasdaq advanced nearly 400 points, or 1.7%.

After the previous day’s slump — the steepest one-day selloff in three months — triggered by Trump’s weekend tariff threats and concerns over Japanese government debt, all eyes were on the president’s Wednesday speech to inform market sentiment.

Addressing world leaders in Davos, Switzerland, President Trump said he was ruling out military action, but argued no country other than the United States can guarantee security for the Danish territory World Economic Forum/Benedikt von Loebell/UPI/Shutterstock

Addressing world leaders in Davos, Switzerland, Trump said he was ruling out military action, but argued no country other than the United States can guarantee security for the Danish territory — which he repeatedly referred to as a “big piece of ice.”

His message initially drove a relief rally, with all three benchmarks climbing more than 1%.

It also helped ease the CBOE Volatility index, which dropped from the mid-November high touched in the previous session.

“It’s indicative of a lot of headlines, a lot of uncertainty, and the situation between the US and Europe is fluid,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial, noting that following Trump’s speech, it was announced the European Parliament was suspending work on the trade deal between the US and the European Union.

Some of the megacaps, which had been at the forefront of Tuesday’s selloff, regained ground.

Nvidia and Alphabet rose roughly 1.5% each.

The blue-chip Dow jumped more than 700 points on Wednesday AP

Meanwhile, Netflix dropped 4.1% after reporting a muted outlook in its latest earnings.

The streaming giant’s stock was also weighed by a pause of share buybacks to help fund the purchase of Warner Bros Discovery’s studio and streaming businesses.

Elsewhere in earnings, more positive numbers from banks sent the regional banking index up 4.1%, hitting its highest since December 2024.

Charles Schwab rose 1.3% after reporting higher fourth-quarter profit, while Citizens Financial Group surged 6.2% on the back of a 31.7% jump in quarterly profit.