U.S. stocks staged a late-session rally on Wednesday, closing sharply higher after President Donald Trump said he had reached what he described as a “framework of a future deal” on Greenland, easing fears of an imminent escalation in trade tensions with Europe.

The market rebound followed a post by Trump on Truth Social after a meeting with NATO Secretary General Mark Rutte, in which he said the understanding would remove the need for tariffs that had been scheduled to take effect on February 1.

“This solution, if consummated, will be a great one for the United States of America, and all NATO Nations,” Trump wrote. “Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”

The president had earlier threatened to impose a 10% tariff on goods from eight European countries, with the levy set to rise to 25% by June if no agreement was reached. That threat, delivered earlier in the week, triggered a sharp sell-off on Tuesday that erased about $1 trillion from the S&P 500, as investors rushed to reprice the risk of a wider transatlantic trade confrontation.

Details of the Greenland framework remained sparse, but the lack of clarity did little to slow Wednesday’s buying spree. Investors moved quickly back into equities, reversing much of the prior session’s losses and signaling renewed confidence that the administration may be stepping back from its most aggressive trade posture.

Market strategists quoted by Business Insider pointed to the episode as a textbook example of the so-called TACO trade — shorthand for “Trump Always Chickens Out” — a phrase that has gained traction among traders who believe the president often uses maximalist threats as leverage, only to soften his stance once negotiations begin.

“The comments addressed two of the biggest headwinds hanging over markets,” said Art Hogan, chief market strategist at B. Riley Wealth Management. He noted that Trump’s remarks appeared to defuse both tariff risks and geopolitical anxiety. “Walk softly and carry a big stick, and you get that TACO reaction and the market can finally unclench. It’s an exhausting process, and this is the exact news investors were hoping to hear — some form of resolution.”

The sense of relief had already begun to build earlier in the day, when Trump told delegates at the World Economic Forum in Davos, Switzerland, that he would not use military force to take control of Greenland. That statement helped calm nerves after earlier rhetoric raised questions about how far the administration might push its territorial ambitions.

As equities rallied, other elements of what some traders have dubbed the “Sell America” trade began to unwind. The benchmark 10-year U.S. Treasury yield fell four basis points, signaling renewed demand for government debt, while the U.S. Dollar Index firmed modestly to 98.82, suggesting stabilizing confidence in dollar-denominated assets.

“President Trump’s statement that he won’t use military force to control Greenland is sparking a relief rally on Wall Street on the heels of yesterday’s sell-off,” said Jos Torres, senior economist at Interactive Brokers.

He described the market reaction as pent-up positioning being released once investors sensed a shift in tone.

“Traders piled into shares and Treasuries once the U.S. leader delivered a more conciliatory message than expected.”

For many analysts, the episode fits a familiar pattern. Matthew Ryan, head of market strategy at Ebury, said Trump’s use of tariffs remains largely tactical.

“As we know from recent history, Trump uses these tariffs as a blunt instrument and a negotiating lever to pull to get his way on the world stage,” Ryan wrote, adding that his base case remained a compromise between the U.S. and Denmark, with the TACO trade resurfacing as a dominant market theme.

The term gained prominence last April after Trump walked back some of his tariff proposals for Liberation Day, triggering a record-breaking rally in U.S. stocks. Chatter around the trade intensified again on Tuesday as markets absorbed the Greenland-related tariff threats, only to reverse course a day later.

Analysts at JPMorgan said they were interpreting the administration’s latest moves through what they called an “Art of the Deal” lens, arguing that Trump’s strategy often involves creating urgency through aggressive positioning.

“Trump creates noise and throws in a maximal stance designed to trigger negotiation and create leverage,” the bank wrote in a note to clients, adding that an eventual agreement with Denmark appeared the most likely outcome.

Other research firms echoed that view. BCA Research estimated there was a 40% chance the new tariffs would not be implemented at all, possibly due to what it described as Trump’s own retreat. Chief geopolitical strategist Matt Gertken said a familiar sequence could follow, with markets initially rattled, only for the administration to change course, as it did after Liberation Day.

JPMorgan Chase chief executive Jamie Dimon on Wednesday delivered a rare public disagreement with President Donald Trump’s immigration agenda, warning that the administration’s enforcement-heavy approach risks harming both the U.S. economy and the social fabric.

Speaking on a panel at the World Economic Forum in Davos, Switzerland, Dimon opened by crediting Trump for tightening border controls, a priority that has long resonated with parts of the business community. Illegal crossings at the U.S.-Mexico border fell to their lowest level in 50 years between October 2024 and September 2025, according to federal data cited by the BBC, an outcome the administration has repeatedly pointed to as evidence that its strategy is working.

But Dimon drew a clear line between border control and the way immigration enforcement is now being carried out inside the United States. His sharpest comments appeared to reference widely circulated videos and reports of Immigration and Customs Enforcement operations targeting alleged undocumented immigrants.

“I don’t like what I’m seeing, five grown men beating up a little old lady,” Dimon said. “So I think we should calm down a little bit on the internal anger about immigration.”

He did not specify a particular incident, and it remains unclear whether he was referring to a single case or speaking more generally about ICE confrontations. Still, the comment marked one of the bluntest critiques of Trump’s immigration tactics from a sitting chief executive of a major U.S. corporation during the president’s second term.

Since returning to office, Trump has moved swiftly to overhaul immigration policy. His administration has prioritized mass deportations, narrowed access to asylum, and significantly expanded funding for ICE personnel and detention facilities. It has also rescinded previous guidance that limited where immigration arrests could occur, opening the door to enforcement actions at schools, hospitals, and places of worship.

Supporters say the measures restore the rule of law; business groups and immigrant advocates argue they have fueled fear across entire communities.

Dimon’s comments highlighted the economic dimension of that debate. He pressed for clarity on who is being swept up in raids, asking whether those detained are in the country legally, whether they are criminals, and whether they have broken U.S. law.

“We need these people,” he said. “They work in our hospitals and hotels and restaurants and agriculture, and they’re good people… They should be treated that way.”

That argument has been a consistent feature of Dimon’s public positions for years. As the head of the world’s largest bank by market capitalization, he has repeatedly described immigration reform as one of the most effective ways to lift U.S. growth, ease labor shortages, and strengthen long-term competitiveness.

In shareholder letters and interviews, he has supported a merit-based green card system, citizenship for immigrants brought to the U.S. as children, and a more flexible approach to skilled-worker visas such as the H-1B programme.

On Wednesday, he returned to those themes, urging Trump to pair enforcement with pathways to legality and citizenship for “hardworking people” and to preserve access to asylum for those who qualify.

“I think he can, because he controlled the borders,” Dimon said, suggesting that the administration now has political room to soften its stance without losing credibility on security.

The remarks stood out in a corporate environment where public criticism of Trump has been muted. Unlike during his first term, when executives openly challenged policies ranging from trade to climate change, many CEOs have largely stayed silent this time around. Wall Street analysts and political observers say business leaders are wary of retaliation from an administration that has sued media organizations, universities, and law firms, and has shown a willingness to use regulatory and legal pressure against perceived opponents.

That dynamic surfaced directly during the Davos discussion. Zanny Minton Beddoes, editor-in-chief of The Economist, told Dimon she was struck by how careful he and other executives had been when discussing Trump.

“You are one of the more outspoken business leaders,” she said. “I’m genuinely struck by the unwillingness of CEOs in America to say anything critical. There is a climate of fear in your country.”

Dimon pushed back, arguing that he had been clear about his disagreements with the president on immigration, tariffs, and relations with European allies.

“I think they should change their approach to immigration,” he said. “I’ve said it. What the hell else do you want me to say?”

Even so, his intervention underscored how unusual such candor has become. Although for Trump, immigration remains a core political issue and a defining feature of his presidency, it is something different for corporate America. The tension between enforcement, labor needs, and economic growth is becoming harder to ignore. Dimon’s comments suggest that, at least for some business leaders, the cost of staying silent may now rival the risks of speaking out.