Topline
Major stock indexes popped late in the trading day on Wednesday after President Donald Trump announced a “framework of a future deal with respect to Greenland” with NATO and the cancellation of planned new European tariffs, just one day after markets slid following threats of tariffs and trade wars over the Arctic territory.
Markets jumped after Trump announced his threatened tariffs over Greenland were called off.
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Key Facts
The Nasdaq was up 1.8% at its peak around 3 p.m. EST, while the Dow Jones Industrial Average rose 677 points, or 1.4%, as of 3:15 p.m. EST.
The indexes mostly settled after their initial jump, with the Dow up 589 points at close, or 1.2%, and the S&P 500 and Nasdaq also both up around 1.2%.
The jump comes only one day after markets dropped as uncertainty over the future of Greenland rose, prompting the S&P 500 to shed roughly $750 billion Tuesday morning.
10-year Treasury yields also dropped slightly, down to about 4.257%.
Key Background
Trump spent the last few weeks fixated on acquiring Greenland, the self-governing Danish territory in the Arctic. Danish and Greenlandic officials met with Vice President JD Vance and Secretary of State Marco Rubio last week, but the European leaders said they had a “fundamental disagreement” over the territory’s future and would not accept a deal to sell the island to the U.S. Days later, Trump threatened Denmark and seven other European nations that sent military personnel to Greenland with a broad 10% tariff should the U.S. not reach a deal to acquire the territory by Feb. 1. The threatened tariffs would rise to 25% in June if no deal were reached. In response to rising uncertainty over the tariff threats and future of U.S. trade relations with Europe, one of its largest trading partners, the markets slid on Tuesday while Treasury yields rose. Trump continued to insist the U.S. needed Greenland while speaking at the World Economic Forum in Davos, Switzerland, on Wednesday, but also ruled out using force to take the territory. In a Truth Social post later in the day, Trump called the threatened tariffs off and announced a “framework” for a deal concerning the island, but offered few details about an agreement.
Crucial Quote
“I think it puts everybody in a really good position especially as it pertains to security and minerals and everything else,” Trump told reporters.
Further Reading
Source: https://www.forbes.com/sites/zacharyfolk/2026/01/21/stocks-jump-after-trump-announces-greenland-agreement-dow-up-nearly-700-points/
