Traders work on the floor of the New York Stock Exchange during morning trading on Jan. 21, 2026.
Technology stocks bounced on Wednesday after President Donald Trump said the U.S. has reached a "framework" for a deal for Greenland with NATO and dialed back his tariff threats on Europe.
Trump announced the development in a post to Truth Social and said he would hold back on tariffs planned for Feb. 1 on several European nations.
"This solution, if consummated, will be a great one for the United States of America, and all NATO Nation," he wrote.
Chip stocks led the tech sector's gain. Intel rallied 11%, while Advanced Micro Devices , Arm Holdings and Western Digital jumped more than 8% each. Micron Technology and Marvell Technology rose at least 5% each.
Stocks surged earlier in the day after Trump ruled out the use of military force in Greenland, easing geopolitical fears that sparked a global sell off earlier in the week.
On Tuesday, tech companies had sold off after Trump pledged new tariffs on eight countries that opposed a U.S. acquisition of Greenland as leaders convened in Davos, Switzerland, for the World Economic Forum
A potential peace deal between Russia and Ukraine, along with a takeover of Greenland, are among the agenda items for the president and his team while in Switzerland.
Elsewhere, Tesla and Nvidia gained more than 2%, while Meta Platforms added about 1.5%. Amazon , Salesforce and Apple were up slightly.
WATCH: President Trump: I won't use force on Greenland