Thursday on Wall Street brought a continuation of the solid gains from the previous day. Investors welcomed with relief the announcement of the agreement on Greenland and the abandonment of higher tariffs on Europe, which US President Donald Trump had threatened. There are also many voices that this does not have to be the end of the conflict.
The Dow Jones Industrial was up 0.63% at the close. and amounted to 49,384.01 points.
The S&P 500 increased by 0.55% at the end of the day. and amounted to 6,913.35 points.
The Nasdaq Composite increased by 0.91%. up to 23,436.02 points
The Russell 2000 mid-cap index is up 0.76%. up to 2,718.77 points This is a new all-time high for this index.
The VIX index falls by 7.46%. up to 15.64 points
Major U.S. stock indexes are rising for a second straight day after Trump said he would no longer impose new tariffs on imports from eight European countries, which were scheduled to take effect on February 1, and announced a “framework agreement” on Greenland.
Trump, who in recent weeks has emphasized the need for the US to take control of Greenland, wrote on Wednesday on the Truth Social platform that he and NATO Secretary General Mark Rutte “have developed a framework for a future agreement on Greenland.” The president later told CNBC that “we have a concept of an agreement.”
“When we look beneath the surface of the market and remove it from the S&P 500 index, which is dominated by the 'Magnificent Seven' and large-cap companies, it turns out that the market has not lost its rhythm at all,” Eric Parnell, chief market strategist at Great Valley Advisor Group, said in an interview with CNBC.
Stocks were already rising after the US president said in a speech at the World Economic Forum in Davos, Switzerland, that he would not take action to take Greenland by force.
That marked a significant shift in sentiment from Tuesday, when Trump's tariff threats sparked a “sell America” movement as U.S. stocks as well as the U.S. dollar came under pressure and Treasury yields soared.
“Often, the words coming from the White House are part of broader negotiations and striving for a certain result, so any noise that appears during this process most often turns out to be buying opportunities.” Parnell said.
“The market fundamentals are still strong,” he added.
Although the mood after the announcement of the framework of the agreement is optimistic, the situation seems far from over. On Thursday, Danish Prime Minister Mette Frederiksen called Trump's conversation with Rutte on Arctic security “good and natural” and said the country was ready to talk with the US on the “Golden Dome” missile defense plan. However, she emphasized that sovereignty was not negotiable.
“The Kingdom of Denmark wants to continue a constructive dialogue with allies on how we can strengthen security in the Arctic, including in the US Golden Dome, provided this is done with respect for our territorial integrity,” Frederiksen said.
Analysts warn against complacency as threats of tariffs become an increasingly common negotiating tactic.
“The chaos is far from over and markets will experience continued volatility due to the Trump administration's unpredictable foreign policy,” said Kyle Rodda, senior financial analyst at Capital.com.
“The hidden risk is complacency. Investors are taught to ignore threats because they will be withdrawn until the day they are not withdrawn,” said Matthew Tuttle, CEO of Tuttle Capital Management.
The PCE deflator in the US in October was 2.7%. y/y, compared to the consensus of 2.7%. On one day, the office published the outstanding PCE deflator readings for October and November due to the suspension of the US federal government.
The base rate was 2.7%. y/y, against expectations of 2.7%. rdr. On a month-to-month basis, the PCE deflator was +0.2%. Expected +0.2%. Excluding food and energy prices, the PCE deflator was +0.2%. mdm. Expected +0.2%.
The number of people applying for unemployment benefits for the first time last week in the US was 200,000. Economists expected that the number of new unemployed people would amount to 209,000. compared to 199 thousand previously, after correction from 198 thousand
The number of unemployed people continuing to receive benefits amounted to 1.849 million in the week that ended on January 10. Analysts expected 1.89 million compared to the previously recorded 1.875 million, after correction from 1.884 million.
US Gross Domestic Product increased by 4.4% in the third quarter. on an annualized basis (SAAR) quarter to quarter – the Ministry of Trade reported in the second calculation. Initially estimated +4.3%. In Q2, US GDP increased by 3.8%, and in Q1, US GDP decreased by 0.5%. Private consumption increased by 3.5% in the third quarter, compared to 2.5%. in the previous quarter. Initially, it was estimated at 3.5%.
The core PCE deflator amounted to 2.9% in Q3 on an annualized Q4 basis, compared to the preliminary estimate of 2.9%. and 2.6 percent in the previous quarter. The PCE deflator is the US Federal Reserve's preferred measure of inflation.
On the oil market, WTI contracts for February are down by 1.93%. to 59.45 per barrel, and March Brent futures fall by 1.64%. up to USD 64.17/b.(PAP Biznes)
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