Stocks rebounded on Wednesday as President Donald Trump pulled back on new tariff threats on several European nations, stating that a deal framework over Greenland has been reached.

The Dow Jones Industrial Average (DIA  ) jumped nearly 600 points to settle at 49,077.23, while the S&P 500 Index (SPY  ) and Nasdaq Composite (QQQ  ) each rose about 1.2% to close at 6,875.62 and 23,224.82, respectively.

Market sentiment was boosted Wednesday after Trump said in a speech at the World Economic Forum in Davos, Switzerland that he would not use force to acquire Greenland. Investors were encouraged earlier in the session, reversing the so-called "sell America" trade, after Trump also dropped his proposed 10% import tariffs on goods from France, Germany, the United Kingdom, The Netherlands, Denmark, Finland, Sweden, and Norway, starting Feb. 1.

"Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region," Trump wrote in a post on his social media platform Truth Social. "This solution, if consummated, will be a great one for the United States of America, and all NATO Nations. Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st," he added.

Technology names like Nvidia (NVDA  ) and Advanced Micro Devices (AMD  ) each climbed higher on Wednesday as investors rotated back into growth stocks, while gold prices reached a fresh record above $4,800.

On the earnings front, Netflix (NFLX  ) shares fell on Wednesday, reaching a 52-week low, after the streaming giant posted underwhelming first-quarter guidance following its lackluster fourth-quarter earnings report late Tuesday. The company now calls for first-quarter earnings of $0.76 per share, well below analysts' estimates of $0.81 per share.

Netflix also amended its proposed acquisition of Warner Bros Discovery (WBD  ) to be an all cash offer late Tuesday, with the company planning to pause share repurchases to fund the deal. The company said in its letter to shareholders it sees the transaction as a move "to accelerate our business strategy."

"We're working really hard to close the acquisition of Warner Bros. Studios and HBO, which we see as a strategic accelerant," CEO Ted Sarandos told analysts during the company's earnings call. "And we're doing all this while we're driving and sustaining healthy growth."

United Airlines (UAL  ) reported better-than-expected fourth-quarter earnings late Tuesday, and forecasted for potential record earnings this year, benefitting from increased demand for higher-priced tickets. The airline expects adjusted earnings per share of between $12 and $14 for its full year 2026, coming in line with expectations. For its first-quarter, United calls for earnings of $1 to $1.50 per share, coming in above estimates at the high end of the range.

In economic news, pending U.S. home sales fell 9.3% in December over November, the National Association of Realtors reported Wednesday, offering the latest warning sign from the housing market even as mortgage rates decline. Annually, contract signings for previously owned homes fell 3%.

"After several months of encouraging signs in pending contracts and closed sales, the December new contract figures have dampened the short-term outlook," said Lawrence Yun, chief economist at NAR, in a statement. "We'll be watching the data in the coming months to determine whether the soft contract signings were a one-month aberration or the start of an underlying trend."

Elsewhere, TD Cowen analysts led by Joshua Buchalter reiterated their buy rating on Broadcom (AVGO  ) after meeting with the company on Wednesday, and raised the firm's price target to $450, implying a 35% potential upside from Tuesday's close.

The analysts highlighted that CEO Hock E. Tan "expressed clear confidence in meaningful upside to its most recently disclosed backlog figure, including networking, and that customer owned tooling is not a major concern," Buchalter said in a report issued late Tuesday, adding that Tan "emphasized that Broadcom has seemingly insatiable demand for its products."

Looking ahead, market participants will turn their attention towards earnings reports from Procter & Gamble (PG  ) and Intel (INTC  ) on Thursday, alongside November's delayed personal consumption expenditures report.