Wall Street Today: S&P 500, DJIA, Nasdaq Comp Rise as Trump Discloses Greenland 'Framework'
The S&P 500, Dow-30 and Nasdaq Composite all rebounded more than 1% Wednesday after U.S. President Donald Trump canceled threatened U.S.-European tariffs over Greenland, apparently ending a dispute that sent stocks reeling Tuesday.
The $Dow Jones Industrial Average (.DJI.US)$ rose 588.64 points (1.21%) to a 49,077.23 close, while the $Nasdaq Composite Index (.IXIC.US)$ gained 270.50 points (1.18%) to 23,224.83 and the $S&P 500 Index (.SPX.US)$ added 78.76 ticks (1.16%) to 6,875.62.
Macro
All three indexes had fallen some 2% Tuesday after Trump threatened over the long U.S. holiday weekend to impose up to 25% tariffs on eight European countries until they endorsed his efforts to acquire Greenland from Denmark.
The European Union responded by saying it might cancel a recently negotiated U.S.-E.U. trade deal and impose retaliatory duties on American goods instead.
The dispute sent U.S. stocks falling Tuesday, as markets generally dislike tariffs.
However, Wall Street rebounded early Wednesday after Trump said during a speech at the Davos, Switzerland, global economic conference that while he still plans to acquire Greenland for supposed national-security reasons, he won't use force to seize it.
Gains then increased later in Wednesday's session when the president said in an interview that he's canceling his planned European tariffs after reaching a "framework of a future deal with respect to Greenland" with the U.S.-European NATO alliance.
The calmer Greenland situation helped push most of the "Magnificent Seven" tech stocks and other big caps higher Wednesday – one day after all of the Mag-7 and many non-Mag-7 names had fallen.
U.S. big-cap stocks are sensitive to global tensions because most of them are large multinational companies that rely on world trade for both supply chains and end markets for their products.
However, Wednesday's improved global-trade outlook boosted such Mag-7 stocks as $NVIDIA (NVDA.US)$ (up 3%), $Tesla (TSLA.US)$ (2.9% stronger) and $Alphabet-A (GOOGL.US)$ (2% firmer).
Companies that make chips, semiconductors, storage and the like also extended a rally they enjoyed Tuesday on an analyst upgrade for Intel.
$Intel (INTC.US)$ added another 11.7% Wednesday, while $SanDisk (SNDK.US)$ gained 10.6%, $Advanced Micro Devices (AMD.US)$ improved by 7.7% and $Micron Technology (MU.US)$ rose 6.6%.
Wednesday's other tech winners included $Arm Holdings (ARM.US)$ (6.3% better), $Seagate Technology (STX.US)$ (5.6% stronger) and $Rezolve AI (RZLV.US)$ (which rebounded 1.4% after losing 23% Tuesday on the sale of $250 million in new shares).
Elsewhere, $Gold (LIST2110.US)$ posted a fresh all-time high Wednesday in a "flight-to-safety" move prior to Trump's announcement of a Greenland framework.
$Gold Futures (APR6) (GCmain.US)$ rose as much as 2.6% on the New York Comex to a record $4,891.10 per ounce. However, $Silver Futures (MAY6) (SImain.US)$ fell 2.4% at last check to $92.40 an ounce after they briefly touched a $95.78-an-ounce all-time intraday high on Tuesday.
Meanwhile, cryptocurrencies – which had declined Tuesday in a risk-off move – rebounded on Wednesday.
$Bitcoin (BTC.CC)$ added 0.7% to $90,155.29 as of shortly before 4:30 p.m. New York time, while $Ethereum (ETH.CC)$ gained 1.3% to $3,034.18, $Solana (SOL.CC)$ improved by 3.1% to $131.52 and $Ripple (XRP.CC)$ rose 4% to $1.98.
Moo-vers
All of the "Magnificent Seven" stocks rose Wednesday except for $Microsoft (MSFT.US)$, which fell 2.3%.
The rest of the Mag-7 rebounded, led by $NVIDIA (NVDA.US)$, $Tesla (TSLA.US)$ and $Alphabet-A (GOOGL.US)$ with their previously mentioned increases of 3%, 2.9% and 2%, respectively.
Other Mag-7 gainers included $Meta Platforms (META.US)$ (1.5% better), $Apple (AAPL.US)$ (0.4% higher) and $Amazon (AMZN.US)$ (which added 0.3%).
Beyond the Mag-7, Wednesday's noteworthy percentage gainers included:
-- Select next-generation nuclear-power stocks, which rose a combination of Trump's positive comments about nuclear energy at Davos and a Bank of America upgrade for Oklo Inc. to "Buy" from "Neutral." $Oklo Inc (OKLO.US)$ gained 1%, while rival $NuScale Power (SMR.US)$ rose 4% in apparent sympathy.
-- Certain crypto-related stocks, which gained ground on cryptocurrencies' rise. Winners included $Bitmine Immersion Technologies (BMNR.US)$ (3.9% firmer) and $Strategy (MSTR.US)$ (2.2% better).
Conversely, Wednesday's major percentage decliners included:
-- Select space stocks, which continued to swing volatilely after soaring beginning in mid-December. Wednesday's decliners included $Sidus Space (SIDU.US)$ (down 8.4%), $AST SpaceMobile (ASTS.US)$ (off 8% after briefly hitting an all-time intraday high earlier in the day), $Redwire (RDW.US)$ (4.3% lower) and $Rocket Lab (RKLB.US)$ (which lost 1.5%).
-- $Netflix (NFLX.US)$, which lost 1.9% as poorly received forward guidance and a pause to its share-repurchase program outweighed Q4 earnings and revenue beats.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.
-- Some rare-earth metal stocks, many of which had rallied Tuesday on fears a new trade war would hurt U.S. access to the key industrial substances. Wednesday's decliners included $Critical Metals (CRML.US)$ (down 11.1%), $MP Materials (MP.US)$ (5.5% weaker) and $Energy Fuels (UUUU.US)$ (off 4.3%).
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Jerry Kronenberg
Director of Financial Content
Former top editor at Seeking Alpha, Fidelity.com, TheStreet.com and UPI.
6511
Followers
3000
Following
13K
Visitors
Follow
Dealios : let’s go 2 dealios!!!!
Dealios : where’s my Btc btw????
Albee : Trump wins again. Billions for Trump family in one day
103170277 : it is hood news. however EU & the rest of likeminded world leaders should put asides their self-interest but instead work in collaboration & consensus ao that they can speak in one voice ti tha felon who think that having the most deatructive weapons in the world can bully any country into submission.
aspiring Bird_0369 : do people really think today’s rose has anything to do with Greenland? those that do are the ones that get caught holding the bag. writers like these are irresponsible for even making any correlation.
Kang Xue : I wouldn't believe it if you said the Dong Wang family doesn't engage in insider trading
VSM : hopping to catching next season rally
Top gain pistion for year starting Jan 5/2026
TheAussieDude aspiring Bird_0369 : So what caused the nasdaq to drop on Tuesday? And then rise a bit on Wednesday? Asking for a friend! Btw, I don't have a clue, besides global uncertainty.
SonicX : TACO again again
affable Blobfish_403 : Europe reacted strongly, forcing Trump to back down.
View more comments...