US stocks rebounded on Wednesday after President Donald Trump signalled a de-escalation in tensions with Europe, saying he had reached a framework for a deal involving Greenland and would not impose the tariffs he had threatened on several European countries.
The S&P 500 climbed 1.2 per cent, recovering more than half of the 2.1 per cent loss it suffered the day before — its worst drop since October.
Markets rallied after Trump said the proposed Greenland deal, if completed, would be "a great one for the United States and its allies in the North Atlantic region".
The rebound pushed the S&P 500 closer to its all-time high set earlier this month.
The Dow Jones Industrial Average surged 588 points, or 1.2 per cent, while the Nasdaq Composite also rose 1.2 per cent.
In the bond market, Treasury yields eased, signalling reduced anxiety among investors. The recovery was also supported by a calming of yields in Japan's volatile bond market.
Meanwhile, the US dollar regained some ground against other major currencies after sliding the previous day.
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