Greenland Saga: Wall Street Cheers as Trade Tensions Ease

Global markets rebounded as President Trump withdrew threats against European tariffs and ruled out seizing Greenland by force. The U.S. economy showed stronger growth, and Wall Street recorded gains. The dollar dipped, and oil prices dropped, reflecting relief in investor sentiment following the President's shift in strategy.

In a notable shift, U.S. President Donald Trump's decision to retract tariff threats against eight European countries and rule out forcibly acquiring Greenland has buoyed investor confidence. This newfound optimism was evident as MSCI's global equities gauge posted a second straight day of advances alongside a dip in the U.S. dollar.

Economic indicators also played a role in calming markets. Data revealed that the U.S. economy expanded at a faster pace in the third quarter than previously estimated, with a revised annualized GDP growth rate of 4.4%. Corporate profits rose, and consumer spending showed solid gains, bolstering investor sentiment.

The stock market reacted positively, with the Dow Jones, S&P 500, and Nasdaq all recording significant gains. Oil prices fell, and the dollar declined following Trump's policy pivot, while safe-haven assets like gold rose amid easing geopolitical tensions.

(With inputs from agencies.)