Risk-on sentiment snapped back Wednesday afternoon after President Donald Trump said planned tariffs on European Union countries will no longer take effect, citing progress on a Greenland framework with NATO leadership.



In a tweet on Truth Social, Trump said he will no longer impose the 10% tariffs on European Union countries that were scheduled to take effect on Feb. 1, following what he described as a &#34;very productive&#34; meeting with NATO Secretary General Mark Rutte.



“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,&#34; Trump said. 



&#34;This solution, if consummated, will be a great one for the United States of America, and all NATO Nations.&#34;



Trump said negotiations will continue and extend beyond Greenland. &#34;Additional discussions are being held concerning The Golden Dome as it pertains to Greenland,&#34; Trump said.



He said Vice President JD Vance, Secretary of State Marco Rubio, Special Envoy Steve Witkoff and others will lead negotiations.



<h2>Market Reactions</h2>



All major U.S. indices surged decisively higher, with participation expanding well beyond a narrow group of stocks. 



The Russell 2000 climbed 2.0% to 2,697.66, leading the move as small-cap stocks reacted most directly to the easing of trade-related pressure. 



The Nasdaq 100 – as tracked by the Invesco QQQ Trust (NASDAQ:QQQ) – followed closely, rising 1.9%. 



The Dow Jones Industrial Average advanced 1.6% while the S&amp;P 500 gained 1.6%. 



More than $400 billion in market capitalization was added by Magnificent Seven stocks, led by gains in NVIDIA Corp. (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL), Tesla Inc. (NASDAQ:TSLA), and Meta Platforms Inc. (NASDAQ:META).



According to the Benzinga Pro platform, the strongest-performing stocks with market capitalizations above $50 billion during the last hour of trading included:



<ul>
<li>GE Vernova Inc. (NYSE:GEV): +3.20%</li>



<li>Novo Nordisk A/S (NYSE:NVO): +3.11%</li>



<li>Palantir Technologies Inc. (NYSE:PLTR): +2.92%</li>



<li>Vertiv Holdings Co. (NYSE:VRT): +2.64%</li>



<li>Advanced Micro Devices Inc. (NASDAQ:AMD): +2.34%</li>



<li>Cameco Corp. (NYSE:CCJ): +2.32%</li>



<li>Synopsys Inc. (NASDAQ:SNPS): +2.29%</li>



<li>Arm Holdings plc (NASDAQ:ARM): +2.17%</li>



<li>Cadence Design Systems Inc. (NASDAQ:CDNS): +2.13%</li>



<li>Marvell Technology Inc. (NASDAQ:MRVL): +2.11%</li>
</ul>



Photo: Shutterstock

U.S. stocks surged after President Trump canceled planned EU tariffs, citing progress on a Greenland framework with NATO. The Russell 2000 rose 2.0%, while the Nasdaq 100 and Dow Jones increased by 1.9% and 1.6%, respectively. Major stocks like NVIDIA, Alphabet, and Apple saw significant gains, contributing to over $400 billion in market capitalization growth. The announcement has led to a broader market rally, reflecting increased risk-on sentiment among investors.

- Risk-on sentiment improved after President Trump canceled planned tariffs on the European Union, highlighting progress on a Greenland framework with NATO leadership.  
- Trump announced that the 10% tariffs set to go into effect on February 1 would no longer apply, following a productive meeting with the NATO Secretary General.  
- U.S. markets surged, with the Russell 2000 leading gains at 2.0%, and major stocks like NVIDIA and Apple contributing to over $400 billion in added market capitalization.

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