Risk-on sentiment snapped back Wednesday afternoon after President Donald Trump said planned tariffs on European Union countries will no longer take effect, citing progress on a Greenland framework with NATO leadership.
In a tweet on Truth Social, Trump said he will no longer impose the 10% tariffs on European Union countries that were scheduled to take effect on Feb. 1, following what he described as a "very productive" meeting with NATO Secretary General Mark Rutte.
“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region," Trump said.
"This solution, if consummated, will be a great one for the United States of America, and all NATO Nations."
Trump said negotiations will continue and extend beyond Greenland. "Additional discussions are being held concerning The Golden Dome as it pertains to Greenland," Trump said.
He said Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff and others will lead negotiations.
Market Reactions
All major U.S. indices surged decisively higher, with participation expanding well beyond a narrow group of stocks.
The Russell 2000 climbed 2.0% to 2,697.66, leading the move as small-cap stocks reacted most directly to the easing of trade-related pressure.
The Nasdaq 100 – as tracked by the Invesco QQQ Trust (NASDAQ:QQQ) – followed closely, rising 1.9%.
The Dow Jones Industrial Average advanced 1.6% while the S&P 500 gained 1.6%.
More than $400 billion in market capitalization was added by Magnificent Seven stocks, led by gains in NVIDIA Corp. (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), Tesla Inc. (NASDAQ:TSLA), and Meta Platforms Inc. (NASDAQ:META).
According to the Benzinga Pro platform, the strongest-performing stocks with market capitalizations above $50 billion during the last hour of trading included:
- GE Vernova Inc. (NYSE:GEV): +3.20%
- Novo Nordisk A/S (NYSE:NVO): +3.11%
- Palantir Technologies Inc. (NYSE:PLTR): +2.92%
- Vertiv Holdings Co. (NYSE:VRT): +2.64%
- Advanced Micro Devices Inc. (NASDAQ:AMD): +2.34%
- Cameco Corp. (NYSE:CCJ): +2.32%
- Synopsys Inc. (NASDAQ:SNPS): +2.29%
- Arm Holdings plc (NASDAQ:ARM): +2.17%
- Cadence Design Systems Inc. (NASDAQ:CDNS): +2.13%
- Marvell Technology Inc. (NASDAQ:MRVL): +2.11%
Photo: Shutterstock
