Stock prices on Wall Street rose sharply minutes after Donald Trump announced that he was abandoning the imposition of tariffs on eight European countries. At the same time, the president announced that a “concept of agreement” regarding Greenland was on the table.
The main indices on the American stock exchange ended the day with gains. The Dow Jones Industrial was up 1.21% at the close and the S&P 500 was up 1.16%. The Nasdaq Composite rose 1.18%.
Donald Trump surprised investors twice on Wednesday. Prices began to rise after the US president said during the World Economic Forum in Davos that he would not use force to take over Greenland. After the tariffs were abolished and the agreement on Greenland was announced, the increases intensified.
This is a marked change from recent declines that occurred as the U.S.-Europe conflict over Greenland intensified.
On Wednesday, Trump himself admitted that Tuesday's earlier declines in ratings were related to his desire to annex the island. On Tuesday, his Finance Minister Scott Bessent argued that these fluctuations were unrelated to Trump's threats regarding Greenland.
Tuesday was the worst day on Wall Street since October 2025 and the first major correction after a string of record highs.
