U.S. stocks advanced on Thursday, building on the previous session’s rebound as easing geopolitical tensions fueled a broad-based rally across equities.
The Dow Jones Industrial Average rose 306.78 points, or 0.63%, to close at 49,384.01, continuing its recovery from earlier-week losses triggered by President Donald Trump’s announcement of new tariffs on Europe. The S&P 500 added 0.55% to finish at 6,913.35, while the Nasdaq Composite climbed 0.91% to 23,436.02, lifted by gains in Nvidia, Microsoft and Meta Platforms.
Major indexes finished below their intraday highs. At its peak, the Dow was up more than 530 points, while the S&P 500 and Nasdaq were higher by as much as 0.9% and 1.2%, respectively.
For the week, the Dow is modestly higher, though the S&P 500 and Nasdaq remain on track for weekly declines, down 0.4% and 0.3%, respectively.
Markets surged on Wednesday after Trump said he would not proceed with new tariffs on imports from eight European countries that were scheduled to take effect Feb. 1, and announced a “framework” agreement related to Greenland. Trump, who has recently pushed for greater U.S. involvement in Greenland, said on Truth Social that he and NATO Secretary General Mark Rutte had established a framework for a future deal concerning the territory.
Stocks were already climbing after Trump stated earlier at the World Economic Forum in Davos that the U.S. would not attempt to acquire Greenland by force. The S&P 500, Dow and Nasdaq all gained more than 1% on Wednesday, while the Russell 2000 jumped about 2% to a record close.
The rebound marked a sharp reversal from Tuesday’s selloff, when renewed tariff threats sparked a “sell America” trade that pressured U.S. equities and the dollar while pushing Treasury yields higher.
Despite the improved sentiment, uncertainty remains. Danish Prime Minister Mette Frederiksen said Thursday that Trump’s discussions with Rutte on Arctic security were “good and natural,” and confirmed Denmark’s willingness to engage with the U.S. on its “Golden Dome” missile defense plan, while emphasizing that Greenland’s sovereignty is not up for negotiation.
