Global shares rebounded on Wednesday from a selloff the previous session after U.S. President Donald Trump said a framework on a future deal over Greenland has been reached, APA reports, citing Reuters.
Trump, who is attending the World Economic Forum in Davos, said the U.S. will no longer be imposing tariffs that had been scheduled to take effect from February 1. He had ruled out taking Greenland by force in an earlier speech, which also helped to calm investor nerves.
Wall Street stocks jumped following Trump’s comments on a Greenland framework. The Dow Jones Industrial Average rose 1.21%, the S&P 500 gained 1.16%, and the Nasdaq Composite added 1.18%. The benchmark S&P 500 registered its biggest daily percentage gain since November 24.
"Markets aren’t …
Global shares rebounded on Wednesday from a selloff the previous session after U.S. President Donald Trump said a framework on a future deal over Greenland has been reached, APA reports, citing Reuters.
Trump, who is attending the World Economic Forum in Davos, said the U.S. will no longer be imposing tariffs that had been scheduled to take effect from February 1. He had ruled out taking Greenland by force in an earlier speech, which also helped to calm investor nerves.
Wall Street stocks jumped following Trump’s comments on a Greenland framework. The Dow Jones Industrial Average rose 1.21%, the S&P 500 gained 1.16%, and the Nasdaq Composite added 1.18%. The benchmark S&P 500 registered its biggest daily percentage gain since November 24.
"Markets aren’t rallying because they suddenly understand the endgame in Greenland," said Matthew Smart, director of financial planning and portfolio analysis at WWM Investments in Chicago. "They’re rallying because uncertainty just got priced out. The signal from Donald Trump coming out of Davos is coordination, not confrontation, and that matters. Pulling back near-term tariffs, while opening a framework with NATO around Greenland, tells investors this is shifting from headline risk to negotiation risk."
MSCI’s All-World index was up 0.87%, after losing ground in the last session, while Europe’s STOXX 600 index finished a touch lower by 0.02%. Britain’s FTSE index added 0.11%.
The VIX index, which measures demand for protection against big swings in the S&P 500, dropped more than 15% to 17, a day after jumping to its highest since November.