A specialist trader works at his post on the floor at the New York Stock Exchange, Jan. 21, 2026.
Brendan McDermid | Reuters
Stock futures rose Wednesday night after easing geopolitical fears sparked a broad-based market rally. Traders also looked ahead to a key inflation reading due in the morning.
Futures tied to the Dow Jones Industrial Average advanced 64 points, or 0.1%. S&P 500 futures added 0.2%, while Nasdaq 100 futures gained 0.3%.
Major U.S. stock averages immediately jumped during the regular session after President Donald Trump said he would no longer impose his new Europe tariffs that were set to begin Feb. 1 and announced reaching a deal “framework” over Greenland.
Trump, who has been relentlessly pushing for U.S. control of Greenland in recent weeks, said Wednesday on Truth Social that he and NATO Secretary General Mark Rutte have “formed the framework of a future deal with respect to Greenland.” Shortly after that announcement, Trump told CNBC that “we have a concept of a deal” with the Arctic island. Stocks were already rising after the U.S. president earlier said in a speech at the World Economic Forum in Davos, Switzerland, that he would not move to acquire Greenland by force.
The S&P 500 rose nearly 1.2% on the day, while the 30-stock Dow surged almost 589 points, or 1.2%. The tech-heavy Nasdaq Composite advanced nearly 1.2%. The Russell 2000 index of small-cap stocks gained about 2% and notched a record close.
“The Greenland crisis appears to be defusing and reversing the recent sell-off, although details are still forthcoming around the ‘framework,'” said Eric Teal, chief investment officer for Comerica Wealth Management. He said that the relief rally sparked significant gains in traditional value sectors such as financials and energy stocks.
A broadening rally is a “hallmark of a healthy market,” said Gina Bolvin, president of Bolvin Wealth Management Group.
“Investors should not be surprised that, once again, buy-the-dip has proven to be a solid investment strategy,” she said. “While investors should expect more volatility this year, the case for a continued bull market remains strong …. Earnings estimates continue to rise — not just among the ‘Magnificent Seven’ AI leaders, but across sectors such as financials and industrials.”
Another market catalyst looms on Thursday morning as traders await the release of the personal consumption expenditures price index. The PCE price index is closely watched by the Federal Reserve, as it’s a preferred inflation gauge that reflects changes in consumer spending behavior. Separately, weekly jobless claims are also due.
Investors continue to watch earnings reports this week from several big-name companies. Thursday will see Procter & Gamble, Intel and GE Aerospace post their quarterly results.
Stocks are still in the red for the week despite Wednesday’s rally. The 30-stock Dow is headed for a 0.6% decline, while the S&P 500 and Nasdaq on track to lose about 0.9% and 1.2%, respectively.