Stocks leaped after Wednesday after President Donald Trump called off new Europe tariffs, saying a deal framework has been reached over Greenland.
The Dow Jones Industrials recovered 588.51 points, or 1.2%, to 49,077.10.
The S&P 500 picked up 78.76 points, or 1.2%, to 6,875.62.
The NASDAQ raced ahead 270.5 points, or 1.2%, to 23,224.83.
Even with the day’s gains, the three leading indexes are still in the red for the week. The Dow is pacing for a 0.6% decline, while the S&P 500 and NASDAQ are each on track to post a weekly fall of around 1%.
Tech stocks like Nvidia and AMD led the market comeback as investors piled back into their favorite growth stocks after hunkering down earlier in the week.
Bank stocks also rose after the president said in his Davos speech that he would be asking Congress to implement his proposed credit card cap of 10%, an uncertain prospect given lack of support among lawmakers. Citigroup and Capital One each rose roughly 1%.
Even after Trump said there would be no military action over Greenland tensions were high because of the tariff threat. Earlier Wednesday, European lawmakers suspended the European Union’s trade deal with the U.S. that was reached in July in the midst of ongoing tariff tensions over Greenland. Trump had announced over the weekend that eight NATO members’ goods will face 10% tariffs starting on Feb. 1
— which will then escalate to 25% on June 1 — until a deal to purchase Greenland is reached.
Prices for the 10-year Treasury gained, lowering yields to 4.25%, from Tuesday’s 4.29%. Treasury prices and yields move in opposite directions.
Oil prices gained 31 cents to $60.67 U.S. a barrel.
Gold prices leaped $61.30 to $4,827.10.
