Markets rallied sharply after President Donald Trump signaled a retreat from planned European Union tariffs tied to Greenland, easing global trade tensions and reigniting the buy-the-dip strategy in early 2026.<br /><br />Following a meeting at the World Economic Forum in Davos, Trump announced a new “framework” deal on Greenland, removing the threat of EU tariffs and triggering a relief rally across U.S. stocks. Wealth managers told Benzinga that the rapid de-escalation reduced policy uncertainty, allowing the bull market to reassert itself.<br /><br />The rally wasn’t limited to AI stocks. Gains spread into value sectors, financials, and energy, while major indexes including the S&P 500, Nasdaq 100, and Dow Jones turned positive for the year. This move reinforced investor confidence that short-lived geopolitical shocks continue to create buying opportunities.<br /><br />This video breaks down what changed, why markets reacted so quickly, and what the Greenland framework signals for investors navigating volatility in 2026.
