What’s Driving the Markets Today

Futures linked to major U.S. indices are rising, signaling relief in the markets after President Donald Trump announced he would not impose new tariffs on several European countries in connection with his Greenland demands. According to media reports, the decision follows discussions between Trump, NATO, and European leaders, although details of the “framework for a future deal” remain scarce. Gold prices are retreating from record highs following the announcement. Meanwhile, Intel is set to release its earnings, and inflation data, closely watched by the Federal Reserve, will be published soon.

1. Futures Are Rising

U.S. index futures are moving higher on Thursday as investors welcomed Trump’s backdown on additional tariffs for European countries.

As of 03:00 ET (08:00 GMT), Dow futures are up 61 points (0.1%), S&P 500 futures are up 20 points (0.3%), and Nasdaq 100 futures are up 117 points (0.5%).

Major Wall Street indices are recovering after a sharp drop the previous day, following Trump’s announcement that a “framework for a future deal” with NATO leaders on Greenland had been reached.

Trump, who in recent days repeatedly threatened to impose new tariffs on eight European countries starting February 1 if the U.S. did not gain ownership rights over the semi-autonomous territory, added that he would no longer impose those tariffs.

Investors are also tracking a growing stream of corporate earnings. United Airlines shares rise over 2% after strong Q4 results, while Netflix falls more than 2% following weaker-than-expected guidance.

2. Trump Backs Down on Greenland Tariffs

Trump’s reversal, coming after days of behind-the-scenes talks with NATO and European officials, eases concerns that the Greenland crisis could deepen the rift between Washington and Europe.

Trump wrote on social media that the agreement, “if implemented,” would be “excellent for the U.S. and all NATO nations.” He provided no further details, only noting that “additional discussions” were ongoing regarding the proposed “Golden Dome” defense system for Greenland.

European sources say the negotiations will focus on a possible agreement with Denmark for troop deployment on the island and expanding European security efforts in the Arctic.

The U.S. will get first refusal rights for Greenland’s mineral resources, including rare earth elements, which are critical for multiple industries and were a key factor in recent U.S. trade negotiations, especially with China.

At the World Economic Forum in Davos, Trump appeared to rule out the use of military force for Greenland.

The risk-on rally comes alongside a stronger U.S. dollar. ING analysts note that while investors will need more clarity on the Greenland deal, next week’s Fed meeting will refocus attention on macroeconomic factors.

3. Gold Pulls Back

Gold prices slightly decline in European trading after reaching a record high of around $4,900 per ounce. Trump’s tariff concession reduces demand for safe-haven assets.

Spot gold falls 0.1% to $4,826.25 per ounce, while U.S. futures drop 0.2% to $4,826.39/oz.

Gold has surged over 6% in the past three sessions due to geopolitical tensions around Greenland and potential tariffs on European imports, approaching the psychological $5,000/oz level.

4. Intel Earnings

Intel will release its results after U.S. market close.

The company aims to cut costs and strengthen its finances while competing in the computer and server processor markets.

Intel is also working on entering the AI chip market. Nvidia, SoftBank, and even the U.S. government have already invested significantly in Intel, including Nvidia’s $5 billion stock purchase in December.

Other companies reporting today include Procter & Gamble and GE Aerospace.

5. Personal Consumption Expenditures (PCE) Data

Traders are closely watching the Personal Consumption Expenditures (PCE) index, a key measure of inflation monitored by the Fed.

Core PCE for November is expected to remain steady at 0.2% month-over-month and 2.8% year-over-year.

Earlier consumer price and core inflation data have shown stability, a key factor in Fed decisions regarding interest rates.

Attention is also on weekly jobless claims, with new filings falling below 200,000.