S&P futures experienced a modest decline following consecutive gains in the major averages, attributed to a reduction in geopolitical anxieties. Futures for the Dow Jones Industrial Average declined by 92 points, representing a decrease of 0.2%. S&P 500 futures declined by 0.1%, whereas Nasdaq-100 futures experienced a decrease of 0.2%. Intel’s shares declined 13% following the chipmaker’s announcement of a lackluster first-quarter outlook. The major averages experienced an upward movement for a consecutive session, as investors found reassurance in reports indicating a reduction in trade tensions and geopolitical risks. The Dow Jones Industrial Average increased by over 300 points, representing a rise of 0.6%. The S&P 500 experienced an increase of approximately 0.6%, while the tech-focused Nasdaq Composite saw a rise of 0.9%. The small-cap Russell 2000 achieved a record closing level.

Stocks initiated their recovery on Wednesday following President Donald Trump’s decision to cancel the proposed tariffs on imports from eight European nations, originally scheduled to take effect on February 1. The president’s action followed Trump’s declaration that he and NATO Secretary General Mark Rutte had established a “framework of a future deal with respect to Greenland.” Trump conveyed on Wednesday that “we have a concept of a deal” with the Arctic island. Greenland Prime Minister Jens-Frederik Nielsen stated on Thursday that he is unaware of the specifics contained within the “framework” deal announced by Trump, emphasizing that any agreement must honor Greenland’s sovereignty and territorial integrity.

“Details on the agreement are sparse and the geopolitical spat over the island could resurface, but investors are taking relief from the quick progress towards a deal following significant market turbulence at the start of the week,” stated James McCann. He also highlighted the recent increase in gold prices. Gold futures concluded at yet another all-time high on Thursday. “Interestingly, while risk assets are rebounding, gold is holding onto most of its gain over recent days, continuing a strong run for this precious metal amid increasing bouts of geopolitical uncertainty, concerns over the long-term trajectory of U.S. public finances, and rising political pressure on the Federal Reserve,” McCann added.

Gains recorded on Wednesday and Thursday effectively offset the Dow’s earlier losses from the week. The 30-stock Dow has experienced an increase of less than 0.1% over the course of the week. However, the S&P 500 and Nasdaq are poised to experience their second consecutive week of decline, with decreases of 0.4% and 0.3%, respectively.