S&P futures experienced an uptick Thursday morning, following a reduction in geopolitical anxieties that catalyzed a widespread market rally. Market participants also anticipated a crucial inflation report scheduled for release in the morning. Futures associated with the Dow Jones Industrial Average increased by 108 points, representing a rise of 0.22%. S&P 500 futures increased by 0.43%, whereas Nasdaq 100 futures rose by 0.67%. Major U.S. stock averages experienced an immediate increase during the regular session following President Donald Trump’s announcement that he would not proceed with the new tariffs on Europe scheduled to take effect on February 1. Additionally, he revealed the establishment of a “framework” for a deal concerning Greenland.

Trump stated Wednesday on Truth Social that he and NATO Secretary General Mark Rutte have “formed the framework of a future deal with respect to Greenland.” Following that announcement, Trump conveyed that “we have a concept of a deal” with the Arctic island. Equities experienced an uptick following the U.S. president’s remarks during a speech at the World Economic Forum in Davos, Switzerland, where he stated that he would refrain from pursuing the acquisition of Greenland through coercive means. The S&P 500 experienced an increase of nearly 1.2% during the trading session, while the Dow, comprising 30 stocks, saw a significant rise of almost 589 points, also reflecting a 1.2% gain. The tech-heavy Nasdaq Composite experienced an increase of nearly 1.2%. The Russell 2000 index of small-cap stocks experienced an approximate 2% increase, achieving a record closing level. “The Greenland crisis appears to be defusing and reversing the recent sell-off, although details are still forthcoming around the ‘framework,’” stated Eric Teal. The relief rally resulted in notable increases in conventional value sectors, particularly in financials and energy stocks. A broadening rally is indicative of a “hallmark of a healthy market,” stated Gina Bolvin.

“Investors should not be surprised that, once again, buy-the-dip has proven to be a solid investment strategy,” she stated. “While investors should anticipate increased volatility this year, the rationale for a sustained bull market remains robust …. Earnings projections are on the rise — not solely among the ‘Magnificent Seven’ AI leaders, but also across sectors like financials and industrials.” Another market catalyst approaches on Thursday morning as traders anticipate the release of the personal consumption expenditures price index. The PCE price index is monitored by the Federal Reserve, serving as a favored measure of inflation that captures shifts in consumer spending patterns. In a separate development, weekly jobless claims are set to be released.

Market participants are closely monitoring the earnings announcements this week from a number of prominent corporations. On Thursday, Procter & Gamble, Intel, and GE Aerospace are scheduled to release their quarterly results. Equities remain in negative territory for the week, notwithstanding the rally observed on Wednesday. The 30-stock Dow is poised for a 0.6% decrease, whereas the S&P 500 and Nasdaq are set to experience losses of approximately 0.9% and 1.2%, respectively.