Markets Rebound Sharply as Trump Softens Tone on Greenland

Markets staged a strong rebound Wednesday, recouping much of the prior day's steep losses, as President Trump signaled a shift toward diplomacy over confrontation with NATO allies. His decision to shelve planned tariffs and abandon military threats regarding Greenland helped reset investor sentiment. All major indexes rose roughly 1.2%, with small caps and energy stocks outperforming. Tech also rebounded, led by semiconductors. Despite the relief rally, uncertainty remains high, particularly around geopolitics and trade, which continue to inject volatility into markets.

Key Headlines & Market Movers:

• Trump’s Greenland Reversal Calms Markets: President Trump's announcement that he will not impose tariffs on NATO allies, combined with his pledge not to use military force to acquire Greenland, soothed investor concerns following Tuesday’s tariff-driven selloff. While details of the proposed “framework” deal remain vague, the tone shift toward diplomacy eased fears of another prolonged geopolitical spat. Market participants took this as a signal that immediate escalation is off the table, driving a broad-based rally.

Safe-Haven Rally Pauses, But Gold Hits New High: Although gold eased slightly off intraday highs, it touched a fresh record near $4,900/oz before settling around $4,810. The continued strength suggests lingering investor caution despite equity optimism. Treasury yields fell modestly, with the 10-year ending at 4.25%, indicating sustained demand for defensive assets even as equities rebounded.

• Semiconductors and Energy Lead Sector Gains: Chip stocks rallied sharply, with Intel and AMD jumping 11% and 7.5%, respectively, helping lift the broader tech sector. Energy also surged to all-time highs, buoyed by WTI crude’s climb to $60.71. The strength in cyclical sectors reflects renewed risk appetite but also hints at investors favoring quality within value as earnings season unfolds.

Corporate Movers: Kraft, Netflix, and United Airlines: Kraft Heinz fell over 5% following news Berkshire Hathaway may divest a significant portion of its stake. Netflix slipped nearly 2% after providing a cautious earnings forecast, while United Airlines rose over 2% despite flagging geopolitical risks. Microsoft was the only “Magnificent Seven” name to decline on the day, though the group broadly participated in the bounce.

S&P 500 Sector Performance

Looking Ahead

While Wednesday's rebound was encouraging, markets remain highly reactive to headline risk. The geopolitical backdrop related to Trump’s Greenland ambitions could flare up again, and tariff rhetoric may return. Investors will be watching for follow-through on diplomatic overtures, as well as upcoming earnings results and economic data. Volatility remains a near-term feature, but pullbacks tied to political noise may continue to offer selective buying opportunities, particularly in undervalued sectors like financials, materials, and energy.

Disclaimer

Duncan Williams Asset Management is an SEC registered investment adviser. SEC registration does not constitute an endorsement of Duncan Williams Asset Management by the SEC nor does it indicate that Duncan Williams Asset Management has attained a particular level of skill or ability.

This material prepared by Duncan Williams Asset Management is for informational purposes only and is accurate as of the date it was prepared.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Past performance is not indicative of future results. Investing involves risks, including the risk of loss of principal. Before making any investment decision, investors should consult with their financial advisor, consider their individual financial circumstances, and carefully review all relevant information and risk factors. Duncan Williams Asset Management assumes no responsibility for errors or omissions, nor does it accept liability for any loss arising from reliance on this information.

Advisory services are only offered to clients or prospective clients where Duncan Williams Asset Management and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Duncan Williams Asset Management unless a client service agreement is in place.

This material is not intended to serve as personalized tax, legal and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Duncan Williams Asset Management is not a legal or accounting firm. Please consult with your legal or tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.

‍