The immediate reaction of the American stock market after Trump's announcement of the upcoming agreement aimed at Greenland and the entire Arctic region
Brokers on the New York Stock Exchange. Photo credit: Richard Drew / AP / Profimedia
The American stock market recovered strongly on Wednesday, after President Donald Trump announced that he was waiving the new customs tariffs with which he threatened European states and evoked “a framework for a future agreement” regarding Greenland and the Arctic region, reports Reuters.
The Dow Jones Industrial Average jumped 650 points, or 1.3%.
The benchmark S&P 500 climbed 1.2 percent and the Nasdaq Composite rose 1.3 percent, as investors quickly returned to growth stocks after the turmoil on Tuesday over threats of tariffs.
Trump wrote Wednesday evening, in an announcement published on his social network Truth Social, that “following a very productive meeting” with NATO Secretary General Mark Rutte, “a framework for a future agreement regarding Greenland and the entire Arctic region” was reached.
“Based on this agreement, I will not impose the tariffs scheduled to enter into force on February 1,” said the leader from the White House.
LAST TIME Donald Trump waives tariffs against European states. New announcement about Greenland, after a discussion with the head of NATO
The decision abruptly reversed Tuesday's episode known as “sell America,” when the dollar weakened, bond yields exploded and gold hit new highs.
After Trump's announcement, Treasury bonds strengthened, yields fell, and the dollar index returned to positive territory, according to News.ro.
“At the end of the day, the administration has clearly seen the negative impact in the market,” said Tom Garretson, strategist at RBC Wealth Management, adding that investors are banking on the idea that “if the tariffs go too far, the White House will back off.”
Shares of major technology companies, notably Nvidia and AMD, led the session's gains, as investors returned to their favorite stocks after sheltering earlier in the week.
Trump announced earlier in the day in his speech in Davos that he would ask Congress to implement a 10% cap on credit card interest rates, an initiative without clear support among US lawmakers. The statement lifted banking stocks: Citigroup and Capital One rose about 1%.
Although the American president had stated, during his speech, that he would not resort to military action to obtain Greenland, tensions remained high.
Trump announces for the first time that he will not use force in Greenland, but “demands immediate negotiations to acquire this huge piece of ice”
Earlier, on Wednesday, MEPs suspended the EU-US trade agreement negotiated in July, in the context of the escalation of tariff disputes.
At the end of last week, Trump had threatened that eight NATO countries would be targeted by additional tariffs of 10%, starting on February 1, and that they would rise to 25% in June, until Washington reached an agreement on the acquisition of Greenland.
Trump described the potential agreement, in his message on Truth Social, as an “excellent solution for the United States and all NATO nations.”
On Tuesday, all three major US indexes posted their weakest performance since Oct. 10, 2025, amid tariff threats and the president's initial refusal to rule out the use of force. The correction pushed the S&P 500 and Nasdaq indices into the red in 2026.
In Washington, political tensions continued. During Supreme Court hearings on the president's authority to fire Fed Governor Lisa Cook, Judge Brett Kavanaugh warned that the theory advanced by Republican administration lawyers “would weaken, if not destroy” the independence of the Federal Reserve (Fed).
The US Treasurer, Scott Bessent, present in Davos, however, said that the administration in Washington is “not worried” by the strong sales in the previous session.
