US stock market bounced back today, rallies sharply: Dow, S&P 500, Nasdaq turn green after Trump’s Davos comments ease market anxiety over Greenland and NATO
US stock market rallies sharply as Trump’s Davos remarks calm geopolitical fears: The Dow Jones Industrial Average surged 337.89 points, or 0.70%, to close at 48,826.48. Meanwhile, the S&P 500 climbed 0.76% to 6,848.57, and the tech-heavy Nasdaq Composite rose 0.73% to end the session at 23,122.60.
This bullish momentum followed a high-stakes address by President Donald Trump at the World Economic Forum in Davos, Switzerland. The President sought to calm international anxieties by explicitly ruling out the use of military force to acquire Greenland. Market sentiment shifted instantly as the “flight from dollar-based assets” slowed.
The 10-year Treasury yield, which had spiked above 4.3% during Tuesday’s “Sell America” panic, began to retreat as bond prices stabilized. Despite the relief rally, the geopolitical landscape remains tense. While military action is off the table, the administration confirmed it is seeking “immediate negotiations” with Denmark. Today’s action saw Intel (INTC) lead gainers with a 7.22% jump, while the gold market hit a staggering $4,856.20 as investors continue to hedge against long-term currency devaluation and trade instability.
Dow, S&P 500, Nasdaq gains after Trump rules out force in Davos speech
Wall Street staged a powerful rebound on Wednesday as U.S. stocks surged across the board, reversing the sharp sell-off seen a day earlier. The rally came after Donald Trump told global leaders at the World Economic Forum in Davos, Switzerland, that he would not use military force to pursue U.S. interests in Greenland. His remarks eased a major geopolitical concern that had rattled markets, pressured the U.S. dollar, and pushed Treasury yields sharply higher earlier in the week.
The Dow Jones Industrial Average jumped 337.89 points, or 0.70%, to 48,826.48. The S&P 500 climbed 0.76% to 6,848.57, while the Nasdaq Composite gained 0.73% to 23,122.60. All three benchmarks posted their strongest single-day gains in weeks, snapping a run of losses that had briefly pushed the S&P 500 and Nasdaq into negative territory for 2026.
Investor confidence improved after Trump directly addressed fears that the U.S. might use military pressure in its approach toward Greenland, a territory controlled by Denmark. In his Davos speech, Trump acknowledged the speculation but moved to reassure markets.
He said he had no intention of using force and emphasized that he preferred negotiations. Those comments were widely interpreted on Wall Street as a signal that geopolitical escalation was unlikely in the near term. Traders who had positioned defensively rushed back into equities, triggering a strong intraday rally. Trump also used the speech to reiterate his long-standing view that the U.S. carries a disproportionate financial and military burden within NATO. While that message was familiar, the tone was seen as less confrontational than earlier remarks this week. Markets responded less to the NATO critique itself and more to the clarity around military restraint, which had become a key risk factor for global investors.
The turnaround was notable given how severe Tuesday’s reaction had been. On that day, Trump escalated tariff threats tied to Greenland and declined to rule out military options. That uncertainty sent stocks sharply lower and drove the S&P 500 and Nasdaq to their worst daily performances since October 10. Treasury yields surged, with the 10-year yield briefly topping 4.3%, while the U.S. dollar weakened against major peers.
Wednesday’s comments reversed much of that damage. The 10-year Treasury price moved higher, pushing yields lower, and the dollar pared earlier losses. While Trump did say he was seeking “immediate negotiations” over acquiring Greenland, investors appeared comfortable with diplomacy replacing force as the primary strategy.
Treasury yields, dollar, and the return of risk appetite
The 10-year Treasury yield retreated from its recent high of 4.3% after Trump explicitly ruled out military force in Greenland. Yields had spiked previously as investors feared a diplomatic rupture with Europe and potential “buyers’ strikes” from foreign entities like the Danish pension fund AkademikerPension.
The U.S. Dollar Index (DXY), which suffered its worst drop in months on Tuesday, pared its losses. The greenback found support as the immediate threat of a “TACO moment”—where the administration might back down under extreme pressure—gave way to a more predictable negotiating stance.
Joyce Chang, chair of global research at JPMorgan, noted that “sell America” narratives have quietly resurfaced among some global investors, especially government entities. She emphasized that while the dollar still dominates global transactions, diversification away from dollar-based assets has become more persistent.
U.S. Treasury Secretary Scott Bessent sought to downplay those concerns. Speaking to reporters in Davos, he said the administration was “not concerned” about the previous day’s market turbulence. His comments added to the sense that officials were comfortable with near-term volatility and focused on longer-term policy goals.
For equity investors, the key takeaway was stability. With yields moving lower and the dollar no longer sliding, conditions improved for stocks. That environment helped fuel gains across sectors, particularly in financials and technology.
Bank stocks, tech leaders, and today’s most active names
Financial stocks advanced after Trump said he would ask Congress to implement a proposed 10% credit card interest rate cap. While lawmakers have shown limited support for the idea, investors viewed the comments as less immediately disruptive than feared. Shares of Citigroup rose around 2%, while Capital One gained more than 1%.
Technology stocks also contributed to the rally. NVIDIA climbed 1.10% to $180.03, supported by strong demand expectations for AI-related chips. Intel was among the day’s standout performers, surging 7.22% to $52.06 on heavy volume as investors rotated back into beaten-down semiconductor names.
Other active stocks reflected a renewed appetite for risk. Brand Engagement Network soared more than 63%, while PAVmed posted a dramatic 257% jump amid speculative trading. In contrast, Netflix slipped 3.70%, underperforming the broader market as investors took profits.
In commodities, gold extended its powerful rally. Futures rose to around $4,856 per ounce, up nearly 2% on the day, as investors continued to hedge against long-term geopolitical and currency risks. Silver edged lower to $93.83 after nearing record highs earlier in the week. Platinum gained almost 3%, while copper posted a modest advance.
The mixed commodity picture highlighted a market balancing short-term relief with longer-term caution. While equities rallied sharply, demand for traditional hedges like gold remained strong.
Europe pushes back on tariffs as trade tensions linger
Despite the market relief, geopolitical and trade risks have not disappeared. European leaders reacted forcefully to Trump’s earlier tariff threats. Ursula von der Leyen, president of the European Commission, warned that new U.S. tariffs would be a “mistake” and could plunge both economies into a “dangerous downward spiral.” She pledged a united and proportional EU response and reaffirmed solidarity with Greenland and Denmark.
In France, Emmanuel Macron said the European Union could consider deploying its Anti-Coercion Instrument, a powerful trade tool that could restrict U.S. companies’ access to Europe’s single market. Such measures could limit American participation in EU public tenders, impose trade restrictions, and curb foreign direct investment.
Meanwhile, Bernd Lange, who chairs the European Parliament’s international trade committee, was expected to outline Europe’s next steps, including the possible suspension of a U.S.-Europe trade deal finalized last summer.
For now, markets are focused on the immediate shift in tone from Washington. Trump’s rejection of military force removed a major tail risk that had dominated trading earlier in the week. Still, investors remain alert. Trade policy, diplomatic negotiations over Greenland, and evolving relations with Europe are likely to remain key drivers of volatility in the weeks ahead.