U.S. stocks posted solid gains on Thursday, supported by upbeat economic data and improving investor sentiment after Donald Trump announced a framework for a potential agreement related to Greenland.
By 09:32 ET (14:32 GMT), the Dow Jones Industrial Average was up 460 points, or 0.9%. The S&P 500 added 50 points, or 0.7%, while the NASDAQ Composite climbed 210 points, also up 0.9%.
Wall Street extended Wednesday’s rebound, when major indexes recovered sharply from their steepest decline since October, as geopolitical concerns began to ease.
Fed meeting and economic data in focus
Attention is now turning to next week’s policy meeting of the Federal Reserve, where markets widely expect interest rates to remain unchanged despite ongoing pressure from the White House to deliver cuts.
Ahead of the meeting, fresh data reinforced the view that the U.S. economy remains resilient. Weekly jobless claims showed fewer Americans filed for unemployment benefits than expected, pointing to continued stability in the labor market.
Initial claims rose by 1,000 to a seasonally adjusted 200,000 for the week ended January 17, according to the Labor Department, undershooting economists’ forecasts of 210,000.
Economic strength was further highlighted by third-quarter gross domestic product growth of 4.4% on an annualized basis, beating expectations of 4.3% and accelerating from 3.8% in the previous quarter.
Investors are now watching closely for November’s core personal consumption expenditures (PCE) inflation data — the Fed’s preferred inflation measure — for clues on the future direction of U.S. interest rates.
Greenland framework boosts sentiment
Market mood improved notably after Trump said the U.S. had outlined a framework for discussions with NATO allies over Greenland. The announcement included a retreat from plans to impose tariffs on eight European countries from February 1 and a withdrawal of earlier threats to use force over the island.
While details of the framework remain limited, Trump said further talks were ongoing, including discussions tied to the proposed “Golden Dome” defense initiative. His remarks helped calm fears of a broader confrontation between the U.S. and European allies.
Analysts at Vital Knowledge described the Greenland episode as an avoidable source of volatility, noting that removing it from the agenda was ultimately supportive for markets.
Earnings season gathers pace
With geopolitical tensions easing, investor focus has shifted toward corporate earnings and central bank policy. Fourth-quarter reporting continued Thursday, with Intel set to release results after the closing bell.
Elsewhere, Procter & Gamble shares slipped after the company reported quarterly sales that narrowly missed expectations, while organic growth stalled. Mobileye Global fell sharply after posting earnings well below forecasts, despite stronger-than-expected revenue.
McCormick & Company also declined after missing earnings estimates, while Freeport-McMoRan outperformed following a better-than-expected profit report, supported by higher copper prices.
Corporate results released so far suggest overall business conditions remain healthy, reflecting ongoing economic resilience. The earnings calendar intensifies next week, with major technology names including Microsoft, Meta Platforms, and Tesla set to report.
Gold and oil retreat
Gold prices edged lower after touching record highs near $4,900 per ounce in the prior session, as reduced tariff risks trimmed demand for safe-haven assets. Spot gold slipped 0.3% to $4,812.77 per ounce, while U.S. gold futures fell 0.5% to $4,814.11.
Oil prices also declined, weighed down by a reported build in U.S. crude inventories. Brent futures dropped 1.4% to $64.30 a barrel, while U.S. West Texas Intermediate crude fell 1.5% to $59.70.
The American Petroleum Institute said U.S. crude inventories rose by just over 3 million barrels in the week ended January 16. Official inventory data from the U.S. Energy Information Administration is due later in the session, following a delay caused by a federal holiday.
