Wall Street Breathes Again: Stock Futures Jump as Greenland Tensions Cool and Inflation Data Loom

Wall Street woke up in a better mood Thursday morning.

U.S. stock futures climbed as easing geopolitical tensions sparked a relief rally, while investors turned their attention to a critical inflation report that could shape the market’s next move. After days of uncertainty, traders finally found something to cheer about—though caution still lingers just beneath the surface.

By early Thursday, futures across the board were pointing higher:

Tech stocks led the charge in premarket trading. Nvidia and Microsoft gained around 1% each, while Micron Technology and Meta Platforms climbed roughly 2%, signaling renewed risk appetite after a volatile stretch.

The catalyst came from Washington.

Markets surged Wednesday after President Donald Trump said he would drop plans to impose new tariffs on Europe, originally scheduled to take effect on February 1. Even more surprising, he announced reaching a “framework” agreement over Greenland, easing fears of a rapidly escalating geopolitical standoff.

Trump, who has been vocal in recent weeks about U.S. ambitions in the Arctic, said on Truth Social that he and NATO Secretary General Mark Rutte had formed the basis of a future deal involving Greenland. He later told CNBC, “We have a concept of a deal.”

Earlier remarks at the World Economic Forum in Davos also helped calm nerves, as Trump stated the U.S. would not pursue Greenland by force—a comment that markets interpreted as a major de-escalation.

Stocks were already climbing before Wednesday’s close, but Trump’s comments accelerated the move:

According to Eric Teal, chief investment officer at Comerica Wealth Management, the market reaction was swift and broad.

“The Greenland crisis appears to be defusing and reversing the recent sell-off,” Teal said, adding that the relief rally fueled strong gains in financials and energy stocks, two traditional value sectors that had been under pressure.

Despite the upbeat tone, the situation remains delicate.

On Thursday, Danish Prime Minister Mette Frederiksen described Trump’s discussions with NATO as “good and natural,” confirming Denmark’s willingness to engage in talks with the U.S. on Arctic security—including the proposed “Golden Dome” missile defense system.

However, she was clear on one point:
Denmark’s sovereignty is non-negotiable.

“The Kingdom of Denmark wishes to continue a constructive dialogue with allies… provided that this is done with respect for our territorial integrity,” Frederiksen said.

For markets, the message was reassuring but also a reminder that geopolitical headlines can return quickly.

Beyond geopolitics, traders face another major test Thursday morning: the release of the Personal Consumption Expenditures (PCE) price index.

The PCE is the Federal Reserve’s preferred inflation gauge, offering insight into how consumer spending patterns are evolving. A hotter-than-expected reading could reignite fears of prolonged high interest rates, while a softer print may strengthen hopes for future easing.

Also on deck: weekly jobless claims, which could provide fresh clues about the health of the labor market.

Despite Wednesday’s explosive rally and Thursday’s positive futures, stocks are still down for the week:

That context explains why optimism remains cautious. Investors are balancing relief from geopolitical fears with uncertainty around inflation, interest rates, and global politics.

Wall Street is enjoying a moment of calm—but it’s watching the horizon closely.

Cooling tensions over Greenland and Europe gave stocks a much-needed boost, yet the next move likely hinges on inflation data and whether geopolitical diplomacy holds. For now, markets are breathing easier—but they’re far from exhaling completely.