Trump’s Greenland & Tariff Comments Spurs On ‘Risk On’ Appetite – US Market Wrap

Speculative appetite returned to Wall Street, driven by hopes that Trump’s ambitions for Greenland could be resolved without triggering tariffs. Stocks and bonds climbed, while gold eased after the president said he had agreed to a framework for a deal with NATO.

After a cross-asset selloff that some dubbed a revival of the “Sell America” trade, the S&P 500 jumped 1.2% for its biggest gain since November. All major sectors advanced, putting the index back in positive territory for 2026. Energy stocks led gains and touched all-time highs. Small caps outperformed the broader US equity benchmark for a 13th straight session, while big tech shares also rallied.

Trump’s comments marked a sharp shift for a president who has repeatedly sought to pressure Europe over Greenland. The remarks followed a meeting with NATO Secretary General Mark Rutte at the World Economic Forum in Davos.

Details of the proposed framework remained unclear, however, and Trump did not outline what the agreement would include. Earlier on Wednesday, he also ruled out the use of military force in pursuing Greenland.

Among the many headlines from Davos, one veteran strategist said he welcomed Trump’s comment that the stock market would eventually double following Tuesday’s rout linked to Greenland-related tensions.

Meanwhile, US Supreme Court justices signalled concern over Trump’s attempt to remove Fed’s Cook over unproven mortgage fraud allegations, warning that such a move could undermine the Fed’s independence and unsettle markets.

More than 400 stocks in the S&P 500 advanced. The yield on 10-Yr Treasuries fell four basis points to 4.25%. A $13 billion auction of 20-Yr bonds attracted solid demand. The dollar was little changed.