U.S. stocks closed sharply higher on Wednesday as investors reacted to President Trump's decision to reverse his tariff threats against European allies.

Investors appeared to have gotten through to President Donald Trump about the risk posed by his designs for Greenland with a message he wasn't hearing from European leaders: Threatening allies with tariffs and land seizure isn't exactly the type of policy that generates confidence in the global economy.

Trump said on Truth Social that he "will not permit" buybacks and dividends from defense firms. Shares of major contractors dipped after the post.

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U.S. futures are higher and world shares are mixed ahead of U.S. President Donald Trump’s speech to the World Economic Forum in Davos, Switzerland.

History makes it clear that a sizable stock market decline is expected in the presumed not-too-distant future. However, there's nothing in the 155 years of valuation data that suggests a stock market crash is imminent or that one will occur during President Trump's second year.

On 7 January 2025, President Donald Trump issued an executive order (EO) aimed at limiting and preventing certain large defense contractors from conducting stock buybacks, issuing dividends, and awarding executive compensation.

Intel Corp.’s stock slide is delivering a reality check to President Donald Trump’s vision for quickly reviving domestic chip manufacturing led by an American champion, four months after the US moved to acquire as much as a 10% stake in the company.