The S&P 500 (^GSPC 1.52%) rose 1.16% to 6,875.48, the Nasdaq Composite (^IXIC 1.78%) climbed 1.18% to 23,224.82, and the Dow Jones Industrial Average (^DJI 1.56%) advanced 1.21% to 49,077.24 as de-escalation of Greenland and tariff tensions fueled a relief rally.
Market movers
Geopolitically exposed Dow components rebounded after Tuesday’s slide, while rotation themes kept pressure on some mega-cap tech even as the broader Nasdaq bounced. Recent weakness in 3M Company (MMM 3.67%) and International Business Machines (IBM 0.57%) underscored lingering skepticism toward traditional blue chips despite today’s index gains. 3M slid another 0.15% today, though IBM jumped 2.12%.
What this means for investors
President Trump eased tensions with a two-part announcement today. He first ruled out military action in Greenland at his widely followed Davos speech. A social media post followed, saying he had agreed to a framework for a deal with NATO regarding Greenland.
Markets soared in a relief rally. Investors felt comfortable buying back into stocks, mostly across the board, with the backdrop of a lower geopolitical risk profile.
Today’s rally came on the heels of the worst U.S. market session in months yesterday. Japanese bond yields surged to record highs due to fears about Prime Minister Takaichi's tax cut and spending plans. A flight to safety in gold mirrored the risk-off sentiment yesterday. But today’s geopolitical news had investors reversing course.
