Markets rally after Trump drops EU tariffs as Greenland and Fed risks persist

Beincrypto reports markets rallied after US President Donald Trump called off tariffs on European allies following his speech at the World Economic Forum in Davos.

Bitcoin reclaimed $90,000 and US equities stabilized: the S&P 500 rose 1%, recovering part of a 2.1% decline from the day before, the Nasdaq posted similar gains and the Dow Jones Industrial Average jumped 550 points. The dollar weakened against the euro and the yen, while gold held near $4,839, about 1% higher than the previous day. The relief proved short-lived as concerns about a potential Greenland takeover and Fed intervention continued to weigh on sentiment.

Trump said on social media that the United States and Europe had "formed the framework of a future deal," though the deal has not been closed and details remain unknown. He also renewed calls for looser monetary policy and attacked Fed Chair Jerome Powell, calling him "stupid" and accusing him of keeping overly restrictive rates. Concerns about political interference in the central bank prompted public defenses of Fed independence, with JPMorgan Chase CEO Jamie Dimon saying, "This is probably not a great idea and in my view, it will have the reverse consequences of raising inflation expectations and probably increase rates over time." Investors remain cautious about what may come next.

Key Topics

Business, Donald Trump, Greenland, Bitcoin, Jerome Powell, Federal Reserve