A specialist trader works at his post on the floor at the New York Stock Exchange, Jan. 21, 2026.
Brendan McDermid | Reuters
Stock futures 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.
Futures tied to the Dow Jones Industrial Average advanced 177 points, or 0.4%. S&P 500 futures added 0.6%, while Nasdaq 100 futures gained 0.9%.
Big Tech names such as Nvidia and Microsoft were up around 1% each in the premarket. Micron Technology, along with Meta Platforms, advanced around 2%.
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 nearly 1.2%, while the 30-stock Dow surged almost 589 points, or 1.2%. The tech-heavy Nasdaq Composite advanced nearly 1.2%. 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 equity futures are higher 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. Separately, weekly jobless claims are also due.
Stocks are still in the red for the week despite Wednesday’s rally. The 30-stock Dow is headed for a 0.6% decline, while the S&P 500 and Nasdaq on track to lose about 0.9% and 1.2%, respectively.
