Stocks rise again after Trump pulls Greenland tariffs

Stocks rose again Thursday and regained more of their losses for the week after the latest walking back by President Trump from tariffs he had threatened.

- By Stan CHOE

The Standard & Poor 500 gained 0.5% and added to its big gain from Wednesday, when Trump said he reached “the framework of a future deal with respect to Greenland” and called off 10% tariffs for European countries that he said opposed his ambition to control the Arctic island.

The index recovered most of the losses it took after Trump shook financial markets with his tariff threat.

The Dow Jones industrial average climbed 306 points, or 0.6%, and the Nasdaq composite rose 0.9%.

It’s the latest example of Trump making a big threat only to pull back after seeing how much pain it created in financial markets. The pattern has led to the “TACO” acronym, suggesting that “Trump Always Chickens Out” if markets react strongly enough. Tuesday’s drop for the U.S. stock market was the worst since October and large enough that Trump, who often takes credit when Wall Street is doing well, acknowledged “the dip.”

But the pattern also led to deals for Trump that outsiders initially may have considered unlikely if not for his market-shaking opening moves.