Futures tied to the main U.S. equity benchmarks moved higher, signalling a sense of relief after President Donald Trump said he would not introduce new tariffs on several European countries linked to his demands over Greenland. Media reports suggest the decision followed discussions with NATO and European leaders, although details around the “framework of a future deal” remain limited. Gold prices eased back from record highs on the news. Elsewhere, chipmaker Intel (NASDAQ:INTC) is set to report earnings, while closely watched inflation data monitored by the Federal Reserve is due later in the day.
Futures edge higher
U.S. stock futures were trading in positive territory on Thursday as investors welcomed Trump’s retreat from his earlier tariff threat against a number of European nations.
By 03:00 ET, Dow futures were up 61 points, or 0.1%, S&P 500 futures had added 20 points, or 0.3%, and Nasdaq 100 futures were higher by 117 points, or 0.5%.
Wall Street’s main indices advanced on Wednesday, rebounding from their sharpest decline since October in the prior session. The recovery followed Trump’s announcement that he had reached a “framework of a future deal” with the NATO alliance leadership over Greenland.
After days of warning that fresh levies would be imposed on eight European countries from February 1 unless the U.S. was allowed to take control of the semi-autonomous Danish territory, Trump said those tariffs would no longer go ahead.
Investors were also digesting a growing flow of corporate earnings as the quarterly reporting season gathered pace. Shares in United Airlines rose more than 2% after the carrier posted a strong fourth-quarter earnings beat, while Netflix slid over 2% after issuing softer-than-expected forward guidance.
Trump steps back from Greenland tariff threat
Trump’s change of course, reportedly following days of behind-the-scenes talks with NATO and European officials, helped calm fears that the Greenland dispute could further strain relations between Washington and Europe.
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” in NATO, the North Atlantic Treaty Organization.
He offered few specifics, noting only that “additional discussions” are under way regarding the proposed “Golden Dome” defence shield “as it pertains to Greenland.” According to the Wall Street Journal, which cited European officials familiar with the talks, negotiations are expected to centre on a potential U.S. agreement with Denmark covering troop deployments at bases on the island, as well as an expansion of Europe’s security role across the Arctic.
The report added that the U.S. would receive a first right of refusal on Greenland’s mineral resources. The territory holds substantial reserves of rare earth minerals, which are critical to a wide range of industries and have featured prominently in recent U.S. trade negotiations, particularly with China.
Earlier on Wednesday, addressing a packed audience at the World Economic Forum in Davos, Switzerland, Trump also appeared to rule out using military force to take control of Greenland.
The rebound in risk assets was accompanied by a firmer U.S. dollar. In a note to clients, analysts at ING said that while investors may still seek greater clarity on the Greenland agreement, an upcoming Federal Reserve meeting next week “means some refocus on macro drivers is on the cards.”
Gold rally pauses
Gold prices slipped in European trading on Thursday after touching record highs in the previous session, as Trump’s tariff reversal reduced demand for safe-haven assets.
Spot gold edged down 0.1% to $4,826.25 an ounce by 03:40 ET, retreating from an all-time high of $4,888.1/oz seen a day earlier. U.S. gold futures fell 0.2% to $4,826.39/oz.
Bullion had surged more than 6% over the past three sessions amid heightened geopolitical uncertainty linked to the transatlantic standoff over Greenland and potential tariffs on European imports. The rally pushed prices close to the psychologically important $5,000 level as investors sought protection from global volatility.
Intel set to report
Intel is due to release its quarterly results after U.S. markets close on Thursday.
Under chief executive Lip-Bu Tan, the California-based chipmaker has been working to cut costs and strengthen its balance sheet as it faces intensifying competition in the PC and server CPU markets.
Investors are also watching closely to see whether Intel’s push into artificial intelligence chips is gaining traction. The company received a significant boost last year when AI leader Nvidia, technology investor SoftBank and the U.S. government provided substantial funding support. Nvidia, in particular, purchased $5 billion of Intel shares in December.
Earlier this month, Intel unveiled a new AI chip designed for laptops, aiming to reassure investors about products built using its next-generation manufacturing processes.
Other companies due to report earnings today include consumer goods giant Procter & Gamble and aircraft engine maker GE Aerospace.
PCE inflation data ahead
On the economic calendar, attention will be on the release of the U.S. personal consumption expenditures price index, a key inflation gauge closely followed by Federal Reserve policymakers.
The so-called “core” PCE measure from the Bureau of Economic Analysis for November is expected to remain steady at 0.2% month on month and 2.8% on an annual basis.
Earlier this month, Labor Department data showed headline U.S. consumer inflation was unchanged in December compared with the previous month, while underlying price pressures eased slightly. ING analysts said the upcoming PCE report could provide further evidence of “muted” inflation in the world’s largest economy, a crucial factor shaping Fed interest rate decisions.
Employment data will also be in focus later today with the release of weekly jobless claims. Last week, the number of Americans filing for unemployment benefits for the first time fell below 200,000.