Dow Jumps 200 Points as Stocks Rebound for a Second Day After Trump Calls Off Greenland‑Related Tariffs: Live Updates

In a dramatic shift from earlier market turmoil, U.S. stocks rallied sharply for a second straight day after President Donald Trump called off proposed tariffs related to Greenland, triggering relief among investors and sending major indexes higher. Markets were still digesting the unexpected policy reversal, which alleviated fears of a transatlantic trade conflict that had rattled Wall Street just days earlier.

What Sparked the Rebound

The stock market’s renewed strength comes after a brief but intense sell‑off earlier in the week. On Tuesday, markets sank sharply following Trump’s threat of new tariffs on several European countries over disagreements about his Greenland strategy — a move that spooked investors worried about escalating trade tensions with key allies.

However, by Wednesday and Thursday trading sessions, optimism had returned. Trump’s announcement that he would not impose the planned tariffs and that a “framework of a future deal” concerning Greenland and Arctic cooperation had been reached was enough to reverse investor sentiment.

Major Index Movements

As the market recovered, all three major U.S. stock indexes posted gains:

The Dow Jones Industrial Average climbed roughly 200+ points, adding to its gains from the prior day as buyers stepped in.

The S&P 500 and Nasdaq Composite also rose, reflecting broad strength across sectors as traders responded to easing geopolitical concerns.

On Wednesday alone the Dow surged by nearly 600 points — more than 1% higher by close — as traders embraced the news that tariff threats were being withdrawn.

Why the Greenland Tariff News Matters

The turnaround in markets stemmed largely from uncertainty tied to Trump’s tariff threats earlier in the week. His administration had signaled plans to levy tariffs on eight European NATO allies unless they acquiesced to a strategic deal involving Greenland, an autonomous Danish territory of increasing geopolitical interest.

That proposal sparked a swift negative reaction across financial markets, with investors fearing a protectionist escalation that could spill into broader U.S.–EU trade relations. Global equities weakened, and safe‑haven assets like gold climbed as traders sought shelter from volatility.

By scrapping the tariff plan — at least for now — Trump helped calm those fears. His administration described the situation as a diplomatic progress point and a step back from potentially punitive economic measures that might have triggered broader market disruption.

Sector Reactions and Market Breadth

The rebound was not limited to one corner of the market:

Industrial and energy stocks showed notable strength, benefiting from reduced geopolitical risk and expectations of more stable economic growth.

Tech stocks also participated in the rally, signaling improved risk appetite among investors after the uncertainty of earlier in the week.

Travel and airline shares, such as United Airlines, advanced as optimism returned to sentiment‑sensitive sectors.

At the same time, not all individual stocks moved higher. Some companies took a pause or slid slightly due to earnings or company‑specific news that tempered their market performance.

Bond and Currency Markets

The broader financial ecosystem also showed signs of relief:

U.S. Treasury yields eased, reflecting a retreat from a risk‑off posture as fears of tariff‑induced inflation or economic disruption dissipated.

The U.S. dollar stabilized against other major currencies, which had weakened during the earlier sell‑off.

These shifts suggest that investors’ confidence was not only returning to stocks, but across asset classes that had been affected by global trade concerns.

What This Means for Investors

The market rebound highlights how sensitive financial markets have become to geopolitical developments and trade policy signals. In this case, the reversal of threatened tariffs — even without clear details on a final Greenland agreement — was enough to pull markets out of a short‑term downturn.

For investors, this episode underscores two major points:

Policy uncertainty can trigger rapid market moves: Trade disputes and tariff threats can quickly translate into volatility if investors start pricing in potential economic slowdowns.

Market sentiment is tightly linked to clarity and stability: Even tentative moves toward diplomatic solutions or softened positions — such as Trump’s Greenland tariff reversal — can re‑ignite buying on Wall Street.

Looking Ahead

While the immediate market response has been positive, analysts caution that risk remains. The details of any long‑term Greenland agreement are still murky, and geopolitical tensions could resurface if negotiations stall or escalate. Moreover, broader economic factors — including interest rate expectations, inflation data, and corporate earnings — will continue shaping market direction beyond the current news cycle.

Investors will be watching upcoming economic reports and corporate earnings closely as they balance these geopolitical developments with underlying market fundamentals.

Overall, the recent rebound — with the Dow jumping more than 200 points for a second day — reflects growing confidence that trade tensions may have temporarily eased, even if uncertainties still linger on the horizon.