In a dramatic reversal that left traders frantically unwinding their panic positions, US stock markets erupted higher on Wednesday as President Trump announced he'd reached a 'framework of a future deal' on Greenland with NATO Secretary General Mark Rutte—and would therefore cancel the punitive tariff regime he'd threatened to unleash on European allies. The about-face sent equities soaring in what amounted to a collective exhalation of relief that markets had been desperately craving.
The Dow Jones Industrial Average surged roughly 550 points, or approximately 1.2 per cent, whilst the technology-heavy Nasdaq Composite and the S&P 500 each climbed about 1.2 per cent—marking the latter's best performance since November and finally nudging it into positive territory for the calendar year. The rally reversed most of Tuesday's catastrophic decline, when investors had dumped equities in fear that Trump's escalating Greenland obsession would ignite a transatlantic trade war reminiscent of the chaos that followed April's 'Liberation Day' tariff threats.
