Trump Drops EU Tariff Threat, Triggering 1.2% Surge in Major US Indices

U.S. President Donald Trump announced on January 22 he will not impose tariffs on eight European countries scheduled for February 1, de-escalating tensions over Greenland. The conciliatory stance at the Davos World Economic Forum sparked immediate risk-on sentiment, driving all three major U.S. stock indices up approximately 1.2% on Wednesday, January 21. The S&P 500 recorded its largest single-day advance since November 24, while the Nasdaq Composite posted its biggest gain since December 19. Technology stocks gained additional support from Nvidia CEO Jensen Huang's comment that global AI infrastructure requires trillions in capital expenditure. Asian markets rose in Thursday trading, and gold retreated after hitting a record intraday high above $4,800 per ounce. Market focus shifts to Trump's meeting with Ukrainian President Zelenskyy and delayed U.S. PCE inflation data for October and November, due Thursday. Corporate earnings from Alcoa, General Electric, Intel, and Procter & Gamble are also on deck.