Two-day relief rally as Greenland tensions ease… Tesla surges [Wall Street Briefing]

Major Wall Street indexes extended a relief rally as concerns over U.S.-Europe tariffs eased amid a de-escalation in tensions over Greenland’s annexation.

On the 22nd (local time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 306.78 points (0.63%) from the previous session to close at 49,384.01.

The Standard & Poor’s (S&P) 500 added 37.73 points (0.55%) to 6,913.35, while the tech-heavy Nasdaq climbed 211.20 points (0.91%) to end at 23,436.02.

U.S. President Donald Trump said the previous day that he would not use force in relation to the Greenland annexation issue and that he would also withdraw tariffs he had planned to impose on major European countries. The news is seen as having quickly restored investor sentiment.

The market also drew additional reassurance from plans for the United States, Ukraine, and Russia to hold their first-ever trilateral talks aimed at ending the war.

Ukrainian President Volodymyr Zelenskyy said after a summit with Trump in Davos, Switzerland, “Starting on the 23rd, officials from the United States, Ukraine, and Russia will meet in the United Arab Emirates (UAE) for two days to discuss a peace proposal,” adding that “this meeting will be the first trilateral talks.”

U.S. economic indicators remained solid.

According to the U.S. Department of Commerce, the revised estimate of third-quarter real gross domestic product (GDP), on a seasonally adjusted basis, rose at an annual rate of 4.4% quarter-on-quarter. On a quarterly basis, it marked the strongest growth in two years since the third quarter of 2023 (+4.7%).

Inflation data were also benign. The Commerce Department said the core PCE price index, which excludes volatile food and energy, rose 0.2% month-on-month in November, unchanged from October’s 0.2% gain.

The headline PCE price index, which includes food and energy, also increased 0.2% month-on-month, matching October’s 0.2% rise.

By sector, consumer discretionary and communication services rose more than 1%, while real estate fell more than 1%.

By stock, most major tech names advanced. Tesla jumped 4.15% on reports it could expand its robotaxi service across the United States by year-end, while Meta gained 5.66%.

Micron Technology, benefiting from a global shortage of memory semiconductors, rose another 2.18% on the day, with its market capitalization approaching $450 billion.

Intel is plunging more than 6% in after-hours trading. Its fourth-quarter results beat expectations, but a disappointing outlook for first-quarter performance triggered heavy selling.

Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com