The U.S. stock market is showing signs of recovery amidst news from President Donald Trump regarding tariffs that had previously unsettled investors. On Thursday, the S&P 500 climbed 0.4%, building on gains made the previous day when Trump announced he had reached a “framework of a future deal” involving Greenland and rescinded the 10% tariffs he had planned on some European nations. This tariff rollback follows a significant market dip earlier in the week, which was noted as the worst market decline since October.
The Dow Jones Industrial Average also rose, gaining 260 points, or 0.5%, while the Nasdaq composite increased by 0.6%. Market analysts are observing a pattern where Trump’s aggressive initial threats are followed by subsequent retractions, a trend coined as “TACO” – “Trump Always Chickens Out,” effectively illustrating the President’s responsiveness to market reactions.
Despite the positive momentum, emotions in the market remain mixed. Gold prices, which typically serve as a safe haven in uncertain conditions, paused their upward trend, indicating less urgency among investors. Meanwhile, the U.S. dollar strengthened against several foreign currencies, although it weakened against the euro after experiencing a sharp decline earlier in the week due to large-scale sell-offs by global investors in U.S. markets.
In the bond market, Treasury yields held steady after a series of optimistic reports about the U.S. economy. One report indicated that unemployment benefit applications fell more than economists had predicted, suggesting a low pace of layoffs. Additionally, revised figures revealed faster-than-expected growth in the economy during the summer. Reports on inflation rates for November came in close to forecasts, accompanied by slightly better-than-expected consumer spending figures.
Northern Trust experienced a robust surge, climbing 5.8% after surpassing profit expectations, with CEO Michael O’Grady citing strong momentum for the company as it enters 2026. Procter & Gamble saw its shares increase by 2.1% despite revenue falling short of expectations in a challenging economic climate, which was acknowledged by CEO Shailesh Jejurikar. Moreover, Generac, known for its power generators, rose by 4.1% as forecasts predicted harsh winter weather conditions.
However, not all companies fared well; McCormick & Co. saw a 6.3% drop in its shares after reporting profits below expectations, with rising costs attributed to a changing global trade landscape impacting the company.
In a notable market development, BitGo, a firm facilitating the management of digital assets, is set to begin trading on the New York Stock Exchange later in the day. The company’s stock was initially priced at $18 per share, exceeding earlier estimates.
International markets also reflected a similar trend, with indexes in Europe and Asia responding positively to Trump’s tariff reversal. Japan’s Nikkei 225 surged by 1.7%, while France’s CAC 40 gained 1.1%. Support for global markets was further bolstered by a decrease in Japan’s long-term bond yields, which had spiked earlier due to concerns over the country’s rising government debt. The yield on Japan’s 40-year government bond has since dropped below 4%, providing additional optimism in the financial landscape.
