Stock market today: Live updates

Stocks rose Thursday after easing geopolitical fears sparked a broad-based market rally. Traders also looked ahead to a key inflation reading due in the morning.

The Dow Jones Industrial Average traded 253 points higher, or 0.5%. The S&P 500 climbed 0.4%, and the Nasdaq Composite advanced 0.6%.

Big Tech names saw gains, with Nvidia and Microsoft being up around 1% each. Meta Platforms advanced around 3%.

Major U.S. stock averages jumped Wednesday after President Donald Trump said he would no longer impose his new Europe tariffs that were set to begin Feb. 1 and announced reaching a deal “framework” over Greenland.

Trump, who has been relentlessly pushing for U.S. control of Greenland in recent weeks, said Wednesday on Truth Social that he and NATO Secretary General Mark Rutte have “formed the framework of a future deal with respect to Greenland.” The president later told CNBC that “we have a concept of a deal” with the Arctic island.

Stocks were already rising after the U.S. president earlier said in a speech at the World Economic Forum in Davos, Switzerland, that he would not move to acquire Greenland by force. The S&P 500 ended the day up more than 1%, and the 30-stock Dow surged almost 600 points, or more than 1%. The tech-heavy Nasdaq also advanced more than 1%. The Russell 2000 index of small-cap stocks gained about 2% and notched a record close.

“The Greenland crisis appears to be defusing and reversing the recent sell-off, although details are still forthcoming around the ‘framework,'” said Eric Teal, chief investment officer for Comerica Wealth Management. He said that the relief rally sparked significant gains in traditional value sectors such as financials and energy stocks.

While equities rose in the wake of the deal “framework” announcement, the situation appears far from over. On Thursday, Danish Prime Minister Mette Frederiksen viewed Trump’s discussion on Arctic security with Rutte as “good and natural” and said that the country is ready to hold talks with the U.S. on its “Golden Dome” missile defense plan. However, she stressed that sovereignty is non-negotiable.

“The Kingdom of Denmark wishes to continue to engage in a constructive dialogue with allies on how we can strengthen security in the Arctic, including the US’s Golden Dome, provided that this is done with respect for our territorial integrity,” Frederiksen said.

Another market catalyst looms on Thursday morning as traders await the release of the personal consumption expenditures price index. The PCE price index is closely watched by the Federal Reserve, as it’s a preferred inflation gauge that reflects changes in consumer spending behavior.