Traders work on the floor of the New York Stock Exchange during morning trading on Jan. 21, 2026.
Michael M. Santiago | Getty Images
Technology stocks bounced on Wednesday after President Donald Trump said the U.S. has reached a “framework” for a deal for Greenland with NATO and dialed back his tariff threats on Europe.
Trump announced the development in a post to Truth Social and said he would hold back on tariffs planned for Feb. 1 on several European nations.
“This solution, if consummated, will be a great one for the United States of America, and all NATO Nation,” he wrote.
Chip stocks led the tech sector’s gain. Intel rallied nearly 12%, while Advanced Micro Devices, Arm Holdings, Western Digital and Micron Technology jumped more than 6% each. Marvell Technology added 3.5%.
Stocks surged earlier in the day after Trump ruled out the use of military force in Greenland, easing geopolitical fears that sparked a global sell off earlier in the week.
On Tuesday, tech companies had sold off after Trump pledged new tariffs on eight countries that opposed a U.S. acquisition of Greenland as leaders convened in Davos, Switzerland, for the World Economic Forum
A potential peace deal between Russia and Ukraine, along with a takeover of Greenland, are among the agenda items for the president and his team while in Switzerland.
Elsewhere, Tesla and Nvidia gained about 3%, while Meta Platforms added 1.5%. Amazon, Salesforce and Apple rose slightly.
WATCH: President Trump: I won’t use force on Greenland