U.S. stocks rose again Thursday and regained more of their losses for the week following the latest walk back by President Donald Trump from tariffs he had earlier threatened.
The S&P 500 gained 0.5% and added to its big gain from Wednesday, when Trump said he had reached “the framework of a future deal with respect to Greenland” and called off 10% tariffs for European countries that he said opposed his having the Arctic island. The index has recovered most of the losses it took after Trump shook financial markets with his initial tariff threat.
The Dow Jones Industrial Average climbed 306 points, or 0.6%, and the Nasdaq composite rose 0.9%. The article said the move continues a pattern of Trump making a major initial threat and then pulling back after seeing the impact on financial markets, a dynamic that has been dubbed with the “TACO” acronym—“Trump Always Chickens Out.”
The article also said the pattern helped produce deal talk around Greenland that could have seemed unlikely without the market-shaking opening moves. It added that details were still sparse about the Greenland framework Trump said he reached with the head of NATO and that it was not a signed deal yet.
Despite the rebound, financial markets still showed nervousness on Thursday. Gold’s price swiveled between small losses and gains before turning 1.6% higher, and the U.S. dollar weakened against the euro and several other foreign currencies.
Treasury yields held relatively steady, the article said, as a sign that foreign investors weren’t rushing out of the U.S. bond market. It cited reports that pointed to an economy that was stronger than expected, including fewer U.S. workers applying for unemployment benefits than economists expected, a faster-than-expected pace of summer growth, and inflation in November running close to forecasts while consumer spending came in a touch better than expected.
The article reported that the 10-year Treasury climbed as high as 4.28% before later easing to 4.25% from 4.26% late Wednesday. On Wall Street, Northern Trust climbed 6% after reporting stronger profit for the end of 2025 than analysts expected. CEO Michael O’Grady said the company is entering 2026 with “strong momentum across all our businesses.”
Procter & Gamble rose 2.6% after delivering a better profit than analysts expected, though the article said revenue fell just shy of expectations. CEO Shailesh Jejurikar said the company faced “a challenging consumer and geopolitical environment.” Shares of BitGo rose 2.7% in their debut on the New York Stock Exchange after pricing its IPO at $18 per share, above an earlier estimated range of $15 to $17.
JPMorgan Chase rose 0.5% after the article said a lawsuit filed by Trump against the bank caused minor ripples for its stock. It said Trump accused JPMorgan Chase of closing his accounts for political reasons after he left office in 2021. McCormick & Co. fell 8.1% after its profit came in short of expectations; CEO Brendan Foley said it continues to face rising costs because of “a shifting global trade environment.”
All told, the article said the S&P 500 rose 37.73 points to 6,913.35, the Dow added 306.78 to 49,384.01, and the Nasdaq gained 211.20 to 23,436.02. Abroad, indexes climbed across Europe and Asia amid relief tied to Trump’s walk back of tariffs, with Japan’s Nikkei 225 jumping 1.7% and Germany’s DAX returning 1.2%.
It added that global markets also got support from continued easing of long-term yields in Japan’s bond market. The article said the 40-year Japanese government bond yield fell below 4% on Thursday after hitting 4.22% on Tuesday.