U.S. equity futures moved higher, reflecting a sense of relief after President Donald Trump said he would not go ahead with new tariffs on several European countries tied to his stance on Greenland. According to media reports, the decision followed talks with NATO and European officials, though concrete details on the so-called “framework of a future deal” remain limited. Gold prices eased back from record levels, while investors also looked ahead to earnings from Intel (NASDAQ:INTC) and key U.S. inflation data closely monitored by the Federal Reserve.
Futures point higher
U.S. stock futures traded in positive territory on Thursday, as markets welcomed Trump’s reversal on additional tariffs targeting Europe.
By 03:00 ET, Dow futures were up 61 points, or 0.1%, S&P 500 futures gained 20 points, or 0.3%, and Nasdaq 100 futures rose 117 points, or 0.5%.
Wall Street ended higher on Wednesday, rebounding from its steepest drop since October in the previous session. The recovery followed Trump’s announcement that he had reached a “framework of a future deal” with NATO leadership concerning Greenland.
After days of warning that new tariffs would be imposed on eight European countries from February 1 unless the U.S. was allowed to assume control of the semi-autonomous Danish territory, Trump confirmed those measures would not be implemented.
Investors were also digesting a growing wave of corporate earnings as reporting season gathered momentum. United Airlines shares jumped more than 2% after a strong fourth-quarter profit beat, while Netflix fell over 2% after issuing softer-than-expected forward guidance.
Trump softens stance on Greenland tariffs
Trump’s policy reversal, which reportedly came after behind-the-scenes discussions with NATO and European leaders, helped ease concerns that the Greenland dispute could further strain transatlantic relations.
In a social media post, Trump said the agreement “if consummated” would be “a great one for the United States of America” and for “all Nations” within NATO.
He offered few additional details, noting only that “additional discussions” are taking place around the proposed “Golden Dome” defence system “as it pertains to Greenland.” The Wall Street Journal reported, citing European officials familiar with the talks, that negotiations are likely to focus on a potential U.S.-Denmark agreement covering troop deployments on the island and a broader expansion of Europe’s security role in the Arctic.
The report also said the U.S. would gain a first right of refusal over Greenland’s mineral resources. The territory holds significant rare-earth reserves, critical to many industries and a recurring theme in recent U.S. trade negotiations, particularly with China.
Earlier on Wednesday, Trump also appeared to rule out the use of military force to secure Greenland while addressing delegates at the World Economic Forum in Davos.
The rebound in risk assets was accompanied by a firmer U.S. dollar. Analysts at ING said that while investors may still seek more clarity on the Greenland agreement, the Federal Reserve’s policy meeting next week “means some refocus on macro drivers is on the cards.”
Gold pulls back from highs
Gold prices slipped in European trading after touching record levels in the prior session, as Trump’s tariff retreat reduced demand for safe-haven assets.
Spot gold edged down 0.1% to $4,826.25 an ounce by 03:40 ET, retreating from a record $4,888.1 reached a day earlier. U.S. gold futures fell 0.2% to $4,826.39 an ounce.
Bullion had surged more than 6% over the past three sessions amid heightened geopolitical uncertainty tied to Greenland and potential tariffs on European imports, pushing prices close to the psychological $5,000 mark.
Intel earnings ahead
Intel is scheduled to report results after the U.S. market close on Thursday.
Under CEO Lip-Bu Tan, the California-based chipmaker has been cutting costs and reinforcing its balance sheet as competition intensifies in the PC and server processor markets.
Investors are also watching to see whether Intel’s efforts to gain traction in artificial intelligence chips are starting to pay off. The company received significant backing last year from Nvidia, SoftBank and the U.S. government, with Nvidia alone purchasing $5 billion worth of Intel shares in December.
Earlier this month, Intel unveiled a new AI-focused laptop chip, aiming to reassure markets about products built on its next-generation manufacturing technology.
Other companies reporting earnings today include Procter & Gamble and GE Aerospace.
Inflation data in focus
On the economic front, attention will turn to the U.S. personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge.
The November core PCE reading is expected to hold at 0.2% month on month and 2.8% year on year.
Earlier Labor Department data showed headline U.S. consumer inflation was unchanged in December, while underlying price pressures eased slightly. ING analysts said the PCE report could reinforce signs of “muted” inflation, a key factor shaping the Fed’s interest-rate outlook.
Employment data will also be watched later today, with weekly jobless claims due for release. Last week, first-time claims fell below 200,000.
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