The Dow Jones Industrial Average traded higher by 250 points, or 0.5%
Stocks recover from sell-off after Trump rules out military action on Greenland
-1120252475029447.jpg)
Stocks rose on Wednesday after President Donald Trump told the World Economic Forum he would not use force to acquire Greenland, easing a concern that has rattled markets and caused a flight from dollar-based assets.
The Dow Jones Industrial Average traded higher by 250 points, or 0.5%. The S&P 500 gained 0.3%, while the Nasdaq Composite advanced 0.1%.
Trump was commenting in his speech in Davos, Switzerland, about how he believed the U.S. was carrying the financial and military load for NATO.
The 10-year Treasury price turned higher and its yield turned lower following Trump’s comments. The U.S. dollar index pared its decline with other currencies.
While Trump ruled out military action, he did say Wednesday he was “seeking immediate negotiations to once again discuss the acquisition of Greenland by the United States.
“At the end of the day, the administration’s broadly seen the negative market impact. I think the market is kind of relying on the idea that if they do push too far on the tariff threats and whatnot that they’ll start pulling back,” said Tom Garretson, senior portfolio strategist at RBC Wealth Management.
