U.S. stocks surged Wednesday after President Trump announced that the U.S. and NATO had “formed the framework of a future deal” on Greenland and called off threatened tariffs on European nations.

The Dow Jones jumped about 1.2% (550+ points), while the Nasdaq and S&P 500 each gained roughly 1.2%, pushing the S&P back into positive territory for the year.

Trump’s announcement followed a calmer tone at the World Economic Forum in Davos, where he said the U.S. would not use force to seize Greenland and urged “immediate negotiations.”

The market had been rattled by fears of a trade war after Trump had threatened escalating tariffs on Europe for opposing U.S. efforts to acquire Greenland, Yahoo Finance has reported.

On the corporate front, Netflix shares fell despite earnings, while the Supreme Court appeared skeptical of Trump’s bid to remove Federal Reserve governor Lisa Cook, raising concerns about central bank independence.