"The rebound followed the benchmark's slump in the prior session on worries over the risk of a full-blown trade war with Europe as Trump steps up his push to take over Greenland. By backing off his immediate threats to use military force in Greenland, this removed the most glaring current concern, said Steve Sosnick, chief strategist at Interactive Brokers. As a result, the resolute dip buyers were once again vindicated, and the inevitable rally chasers joined the party afterwards,"
"Meanwhile, a trade deal between the US and European Union is on hold after the European Parliament decided to freeze a ratification vote in response to President Trump's escalating threats to seize Greenland. Trump was also optimistic on equity gains, saying the stock market will double while reiterating he would seek a one-year cap on credit card interest rates at 10%."
US stocks rose after President Donald Trump said he didn't want to use excessive force to acquire Greenland, reducing an immediate geopolitical worry. The S&P 500 gained 0.7%, the Nasdaq 100 climbed 0.9% and the Russell 2000 rose 1%, while the VIX briefly fell below 18. Trump reiterated security reasons for owning Greenland and called for immediate negotiations. The European Parliament froze a ratification vote on a US-EU trade deal in response to the Greenland threats. Trump forecasted stocks would double and proposed a one-year 10% cap on credit-card interest; Jamie Dimon warned such a cap would force banks to pull credit lines. Pending existing-home sales fell sharply in December, and long-dated Japanese debt recovered, helping steady Treasuries.
Read at www.mercurynews.com
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