Stocks Surge on Easing Trade Tensions
U.S. stocks rallied sharply on Thursday after President Donald Trump announced he would suspend plans to impose new tariffs on European countries, citing a "framework agreement" over Greenland reached following a meeting with the NATO Secretary General.
The Dow Jones Industrial Average soared nearly 500 points, or 1%, effectively recovering all losses from earlier this week. The S&P 500 climbed 0.8%, while the Nasdaq Composite advanced 1.1%, supported by gains in major technology stocks.
Tech Giants Lead the Charge
Mega-cap technology stocks drove much of the rally. Meta Platforms led the pack with a 3% gain, followed by Alphabet (+1.6%), Microsoft (+1.1%), Broadcom (+1.1%), Apple (+0.9%), Amazon (+0.7%), and Nvidia (+0.5%).
Among Dow components, Procter & Gamble rose 2.3% despite reporting quarterly revenue of $22.21 billion that missed analyst expectations of $22.28 billion. The consumer goods giant did beat earnings estimates, posting adjusted earnings of $1.88 per share versus the $1.86 consensus.
GE Aerospace slid 5.7% despite beating earnings expectations, while American Express gained 1.71% and UnitedHealth added 1.5%.
European Markets Rebound
The tariff suspension sparked relief across global markets. Europe's Stoxx 600 index rose 1.1%, tracking gains in the U.S. and Asia as investors stepped back from trade war concerns that had rattled markets earlier in the week.
Gold Retreats from Record Highs
The risk-on sentiment weighed on safe-haven assets. Gold fell by as much as 1.1% in early trading, retreating after three consecutive sessions of gains that pushed prices to a record high above $4,888 per ounce on Wednesday.
As of midday Thursday, gold was trading around $4,818 per ounce, down $39 from the previous day but still up more than $2,064 compared to one year ago. Despite the day's pullback, gold prices have surged over 70% in the past year amid persistent geopolitical uncertainty.
Economic Data Supports Rally
Sentiment received additional support from solid U.S. economic data released Thursday. Third-quarter GDP growth was revised upward to 4.4% from 4.3%, weekly jobless claims fell to 200,000, and PCE inflation data came in line with forecasts.
The combination of easing trade tensions and resilient economic indicators helped investors shake off recent volatility, though analysts note that tariff policy remains unpredictable and could shift again quickly.
Looking Ahead
Market participants will continue monitoring developments in U.S.-European trade relations, particularly any formal agreements regarding Greenland. The Federal Reserve's next policy meeting and upcoming earnings reports from major companies also remain in focus.
Sources: Bloomberg, CNBC, Fortune, Trading Economics