Stocks rose after President Donald Trump told the World Economic Forum he would not use force to acquire Greenland, easing a concern that has rattled markets and caused a flight from dollar-based assets.
Trump also said that stock market dip deemed insignificant, expects market to double.
The Dow Jones Industrial Average traded 481 points higher, or 0.99%. The S&P 500 gained 0.97%, and the Nasdaq Composite advanced 1%.
Trump was commenting in his Davos, Switzerland speech about how he believed the U.S. was carrying the financial and military load for NATO. Here’s what he said which boosted equities:
“We never asked for anything, and we never got anything. We probably won’t get anything unless I decide to use excessive strength and force, where we would be, frankly, unstoppable. But I won’t do that. Okay? Now everyone’s saying, Oh, good. That’s probably the biggest statement I made, because people thought I would use force. I don’t have to use force. I don’t want to use force. I won’t use force.”
The 10-year Treasury price turned higher and the yield turned lower following Trump’s comments. The U.S. Dollar index pared its decline with other currencies.
While Trump ruled out military action, he did say Wednesday he was “seeking immediate negotiations to once again discuss the acquisition of Greenland by the United States.”