Dow Jumps 300 Points as Stocks Rebound for a Second Day after Trump Calls off Greenland-Related Tariffs

CNBC, Reuters, Bloomberg, AP, and the Wall Street Journal contributed to this report.

Wall Street breathed a little easier after President Donald Trump stepped back from threatened tariffs tied to his Greenland push – sending stocks higher for a second straight day and nudging the Dow sharply into the green. Markets, which had swooned earlier in the week on tariff jitters, rallied as investors bought the dip and cheered the diplomatic U-turn.

By the close, the rally was obvious: the S&P 500 climbed, the Nasdaq rose, and the Dow rocketed up – reversing much of Tuesday’s selloff and recovering hundreds of points as confidence returned. The Associated Press reported big gains across the board, with the Dow jumping roughly in the high hundreds on the day.

Traders said the tariff retreat removed a big tail-risk that had snarled markets.

“The selloff that we saw had nothing to do with the Sell America trade,” noted Elias Haddad of Brown Brothers Harriman, pointing out that hedging by non-US investors magnified the drop.

Once the political risk eased, buyers moved back into tech and big cap names that bear the most influence on benchmarks.

Tech led the charge. Bloomberg noted megacap tech stocks and AI-related names were among the day’s top performers – fueled in part by upbeat comments from industry leaders and a broader appetite for growth assets after the tariff news. Small caps also found their footing, outpacing larger indexes in the bounce.

It wasn’t just politics. Fresh economic data – including consumer spending and inflation measures – reinforced the idea of a resilient US economy, which helped send bond yields higher and trimmed the market’s fear gauge. That combo (less geopolitical fear + steady data) made the rally feel more like a day of recalibration than a fluke.

Still, market nerves aren’t gone. The move shows how sensitive markets remain to headlines – especially ones that hint at trade friction with Europe – and traders are watching whether the Greenland episode truly marks the end of the story or just a temporary detente. For now, though, the mood in the trading pits is a lot sunnier than it was 48 hours ago.