Stocks Rally After Trump Announces Greenland Deal ‘Framework’ and Cancels EU Tariffs
Global markets breathe a sigh of relief after President Trump swaps trade threats for an 'infinite' Arctic security deal with NATO.
Wall Street cheered on Wednesday as a sudden diplomatic thaw in Davos pushed the major indices higher. The Dow Jones Industrial Average (DJI) jumped 1.21%, as investors reacted to a stunning reversal in transatlantic trade policy. President Donald Trump ignited the rally by announcing a “framework” for a deal regarding Greenland and the Arctic region, a move that effectively dismantled the threat of punitive tariffs against European allies.
The S&P 500 (SPX) rose 1.16%, marking its most successful session in two months, while the tech-heavy Nasdaq Composite (IXIC) climbed 1.18%. This sea of green across trading screens followed a period of intense volatility that previously saw stocks plummet amid fears of a renewed trade war. By walking back the 10% tariffs originally scheduled for February 1, Trump removed a massive cloud of uncertainty that had hung over global commerce for weeks.
Also Read: Small Digital Health Stock Charts Bold Path to $250 Million Revenue by 2030
The breakthrough occurred during the World Economic Forum in Davos, Switzerland. After a high-stakes meeting with NATO Secretary General Mark Rutte, the President took to Truth Social to share the news, writing:
Strategic Blueprint for the Arctic
While the administration kept the finer points of the agreement under wraps, the President offered a few glimpses into the concept of the deal during a follow-up interview with CNBC. He suggested the arrangement involves critical mineral rights and the integration of his proposed Golden Dome missile defense system.
When pressed for specifics on how the U.S. might secure these interests without a traditional purchase, Trump remained elusive, but did offer some insight, telling CNBC’s Joe Kernen:
“It’s a little bit complex, but we’ll explain it down the line. They’re going to be involved in the Golden Dome, and they’re going to be involved in mineral rights, and so are we.”
The framework seemingly addresses the national security concerns that Trump voiced earlier in the week. By securing a footprint in Greenland, the U.S. aims to prevent rivals from gaining a strategic edge in the increasingly accessible Arctic waters. Trump emphasized the longevity of this new pact, describing it in terms that suggest a permanent shift in the geopolitical landscape.
“It’s a long-term deal. It’s the ultimate long- term deal. And I think it puts everybody in a really good position, especially as it pertains to security and minerals and everything else,” Trump told reporters in Davos. Later, Trump pushed the timeline even further, calling the arrangement “infinite” and noting, “It’s signed forever.”
This shift in tone arrived just in time for European leaders who had prepared for the worst. Before the announcement, the European Parliament had already halted work on a major trade deal in protest of the tariff threats. The sudden pivot back to cooperation suggests a victory for Rutte’s diplomacy.
NATO spokesperson Allison Hart confirmed the discussions, stating, “Negotiations between Denmark, Greenland, and the United States will go forward aimed at ensuring that Russia and China never gain a foothold – economically or militarily – in Greenland.”
Source: CNBC Television YouTube
Banking Giants and Safe Haven Hesitation
The corporate world watched these developments with a mix of relief and cautious optimism. JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon weighed in on the importance of maintaining strong ties with Europe during a panel discussion in Davos.
Dimon stressed that a unified Western front provides the best path forward for global stability, stating:
“I still think that’s the best thing, to keep the Western world together. Make the world safer and stronger for democracy so that we don’t read that book 40 years from now, how the West lost.”
Despite the rally in equities, the commodity markets told a slightly different story of persistent caution. Gold (XAUUSD) continued its upward trajectory on Wednesday, rising over 1% to bring its annual gains above 11%. Silver (XAGUSD) followed suit, as many investors maintained their hedges against geopolitical risk. Year-to-date, the price of Silver is up over 30%. The fact that precious metals held their ground even as the Dow Jones Industrial Average soared indicates that some corners of the market still harbor doubts about the permanence of the Davos breakthrough.
Yields on U.S. Treasurys also showed a restrained response. While stocks moved aggressively, bond traders stayed somewhat defensive, perhaps waiting for the framework to transform into a legally binding treaty. The market remembers the Liberation Day tariffs of the previous year and the prolonged period of trade friction that followed, leading some to wonder if this concept of a deal can truly withstand the test of time.
Also Read: Why Big Investors Who Can’t Buy Crypto Are Gobbling Up These Stocks Instead
Tense Peace Across the Atlantic
European officials greeted the news with a mixture of hope and skepticism. Danish Foreign Minister Lars Løkke Rasmussen expressed a sense of relief via X, writing:
The day is ending on a better note than it began. We welcome that POTUS has ruled out to take Greenland by force and paused the trade war. Now, let’s sit down and find out how we can address the American security concerns in the Arctic while respecting the red lines of the KoD. pic.twitter.com/XWv1Ffo4UN
— Lars Løkke Rasmussen (@larsloekke) January 21, 2026
Rasmussen’s comments reflected a broader desire among Arctic nations to address American security needs without compromising their own territorial sovereignty. However, other leaders warned against declaring victory too early.
Germany’s Finance Minister Lars Klingbeil urged patience while speaking on national television, stating:
“It’s good that they are engaged in dialogue. But we have to wait a bit and not get our hopes up too soon.”
The President’s negotiation team, led by Vice President JD Vance and Secretary of State Marco Rubio, now faces the task of ironing out the details of this infinite arrangement. They must balance the President’s demand for “everything we need” with the complex legal realities of Greenland’s semi-autonomous status. For now, the threat of a February 1 trade war appears to have vanished. However, investors will likely keep a close eye on the White House for more details on a finalized deal, including the Golden Dome and mineral rights that Trump insists will secure America’s northern frontier forever.
Small Cap News Movers & Winner Deep Dive – By WealthyVC.com
We scan over 10,000 publicly listed stocks across all seven North American exchanges to uncover the market-moving news that actually matters—focusing on high-quality, liquid, growth-oriented companies in sectors attracting serious capital, like AI, blockchain, biotech, and consumer tech.
Each week, we publish Small Cap News Movers, a curated roundup of small and micro-cap stocks surging on meaningful catalysts. We break down what’s driving the move, tap into rumors swirling on social media, and surface sharp insights from both industry experts and retail sleuths.
From this list, we select one standout stock for our Small Cap Winner Deep Dive, released the next day, where we take a closer look at the fundamentals, narrative, and technicals that suggest this winner could keep running.
Powered by our proprietary 4-element, AI-driven analysis system, our goal is simple: cut through the noise, remove the emotion, and help investors dominate the small-cap market with momentum-driven strategies—completely free.
Sign up for email alerts to get the moves before our social media followers.
Read Next: Why Nvidia’s Tech Investments Could Transform the Entire AI Innovation Ecosystem
Join the Discussion in the WVC Facebook Investor Group
Do you have a stock tip or news story suggestion? Please email us at: invest@wealthyvc.com.
Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
