President Donald Trump’s reversal on threatened tariffs sent U.S. stocks higher for a second consecutive day Thursday, building on Wednesday’s gains. Trump said he reached ‘the framework of a future deal’ on Greenland with the head of NATO and withdrew 10% tariffs he had threatened on European countries. The S&P 500 gained 0.5%, the Dow Jones Industrial Average climbed 0.6%, and the Nasdaq composite advanced 0.9%.

The recovery reflects a pattern traders and analysts have observed repeatedly in recent weeks: Trump announces a significant tariff threat that triggers sharp market declines, then reverses course when stock prices fall sharply enough. Analysts have labeled the cycle with the informal acronym TACO — Trump Always Chickens Out.

Economic Data Powers Market Gains

The stock market drew support from stronger-than-expected economic data. The Labor Department reported that fewer Americans filed for unemployment benefits in the latest week than economists anticipated. The U.S. economy expanded faster in the third quarter than the government initially estimated. Inflation in November remained near expectations while consumer spending exceeded forecast.

Treasury Yields Hold as Safe Havens Rise

Treasury yields held relatively steady, with the 10-year yield settling at 4.25%, down from 4.26% the previous day. Gold prices rose 1.6%, signaling investor caution. The U.S. dollar weakened against the euro and other major currencies.

Mixed Results Among Individual Stocks

On Wall Street, Northern Trust climbed 6% after reporting a stronger profit than analysts expected. Procter & Gamble rose 2.6% on earnings that beat expectations, though revenue fell short. BitGo, a cryptocurrency asset manager, surged 2.7% in its New York Stock Exchange debut. JPMorgan Chase rose 0.5% despite a lawsuit Trump filed accusing the bank of closing his accounts for political reasons. McCormick & Co. fell 8.1% after reporting a profit that fell short of expectations.

Global Markets Rally on Tariff Relief

Indexes abroad climbed on relief that Trump had backed away from the tariff threat. Japan’s Nikkei 225 jumped 1.7%, and Germany’s DAX returned 1.2%.