• US stock markets stabilize after Trump's announcement regarding Greenland.
• The S&P 500 rises 1.2%, recovering part of previous losses.
• Trump rules out using force, calming investor nerves.
• Global bond markets respond positively as fears of inflation ease.
• Tariffs on European countries are called off, further boosting market confidence.

U.S. stock markets staged a significant recovery on Wednesday after President Donald Trump announced a framework for a possible deal regarding Greenland, which has been a source of recent tension. The S&P 500 gained 1.2%, reflecting a rebound from its previous downfall, while the Dow Jones Industrial Average rose 588 points and the Nasdaq Composite also saw a notable increase. Investors responded positively to Trump's declaration that he would not impose the threatened tariffs on several European nations, stating, "if consummated, [the deal] will be a great one for the United States of America," according to Al Jazeera, India Times, Los Angeles Times, and Channel News Asia.

Trump's remarks at the World Economic Forum alleviated fears that the U.S. might resort to military action to assert control over Greenland, as he emphasized diplomacy over force, saying, "We wouldn’t use force." The easing of tensions led to a significant decrease in the VIX index, which measures market volatility, indicating reduced investor anxiety, and suggesting that markets were reacting to a shift from confrontation to negotiation, according to Los Angeles Times and Channel News Asia.

In the bond markets, U.S. Treasury yields showed signs of stabilization after experiencing turbulence due to concerns about inflation. The yields on 10-year Treasuries eased to 4.25% as market confidence began to recover from the previous day's panic, showing that investor sentiment was improving alongside the stock market rebound. Analysts highlighted that the calming of Trump’s aggressive tariff threats contributed to this renewed confidence, according to Al Jazeera and Los Angeles Times.

Additionally, gold prices rose 1.9% to reflect ongoing demand for safe-haven assets amid the volatility, further underscoring the cautious sentiment amongst investors even in the face of a recovering stock market. This increase indicates persistent uncertainty in global financial markets, influenced by Trump's unpredictable negotiation style and the geopolitical implications of U.S. interests in Greenland, according to Los Angeles Times and Channel News Asia.