U.S. stock index futures experienced gains on Wednesday evening after President Donald Trump declared that his administration reached a framework agreement pertaining to Greenland. He also stated that the United States will not proceed with tariff measures against several European nations concerning this issue.
The positive momentum in futures followed a robust session on Wall Street, where major equity benchmarks recovered from a previous steep decline earlier in the week. Prior to this update, Trump had threatened tariffs on eight European countries unless they ceded control of Greenland to the U.S.
With geopolitical tensions now on a downward trajectory, market participants are focusing on an array of important earnings releases scheduled for the coming days, alongside an imminent Federal Reserve meeting.
As of 7:07 p.m. ET (00:07 GMT), S&P 500 futures were up by 0.2% at 6,923.75 points. Nasdaq 100 futures increased 0.3% to 25,550.0 points, and Dow Jones futures edged higher by 0.1% to 49,320.0 points.
Earlier in the day, U.S. stock indexes staged a significant turnaround after President Trump announced that the administration had formulated a framework for a prospective deal with NATO involving strategic interests in Greenland and the Arctic region.
Following this announcement, Trump confirmed that he would not implement trade tariffs on eight European countries starting February 1, a move he had previously threatened regarding the Greenland matter.
While Trump did not provide extensive details about the framework, his remarks helped to alleviate concerns over a potential confrontation between the U.S. and allied NATO nations concerning Greenland. Despite repeated demands by Trump for Greenland to be incorporated into the U.S., it remains unclear if this demand has been abandoned following the framework arrangement.
Stock indexes, which had been reeling from earlier losses attributed to heightened geopolitical risks, responded positively to the announcement. The S&P 500 advanced 1.2% to 6,875.62 points, the NASDAQ Composite increased 1.2% to 23,224.83 points, and the Dow Jones Industrial Average rose 1.2% to 49,076.98 points.
Looking ahead, the fourth-quarter earnings reporting season continues with significant companies scheduled to release results on Thursday. These include Procter & Gamble Company, GE Aerospace, Intel Corporation, and Abbott Laboratories.
Recent earnings reports have indicated sustained corporate strength supported by the resilience of the U.S. economy.
Wall Street will be particularly attentive to the upcoming earnings next week from leading technology companies such as Microsoft Corporation, Meta Platforms Inc, and Tesla Inc. Market watchers will be keen to assess whether these so-called “AI hyperscalers” have maintained substantial investment in data center infrastructure and whether their artificial intelligence initiatives have yielded significant returns.
The Federal Reserve is also scheduled to hold a policy meeting next week. Market consensus largely anticipates that the central bank will maintain current interest rates despite increased pressure from the White House for a rate reduction.