U.S. stocks experienced a rally on Thursday, driven by alleviating tensions regarding Greenland and robust domestic economic data, which bolstered investor sentiment. The Nasdaq and the Dow Jones Industrial Average each posted a gain of 0.7%, while the S&P 500 rose by 0.6%, recovering from earlier losses. This upswing followed President Trump's decision to step back from proposing new tariffs against Europe and hinting at a potential framework agreement concerning Greenland.
Leading the market's advance were mega-cap technology stocks, with Meta surging by 5.7%, Alphabet increasing by 0.8%, Microsoft climbing 1.5%, Apple inching up 0.3%, Amazon gaining 1.3%, and Nvidia rising by 0.8%. Meanwhile, GE saw its shares tumble 7.4% despite surpassing earnings expectations, whereas Procter & Gamble saw a 2.7% increase even after falling short on revenue projections.
The overall macroeconomic environment contributed to investor confidence, supported by an upward revision of the third-quarter GDP to 4.4%, jobless claims remaining close to the 200,000 mark, and PCE inflation aligning with expectations. Additionally, consumer spending showed resilience, alleviating concerns about the necessity for immediate policy easing.
