Tech stocks rebound after Trump says U.S. won't use military force in Greenland

• Chip stocks rallied sharply with Intel up 11%, Micron Technology up 9%, and Advanced Micro Devices up 8%
• Trump's softened rhetoric on Greenland reversed Tuesday's global sell-off triggered by his tariff threats against eight countries
• Major tech stocks including Meta, Amazon, and Apple posted gains ranging from 1.5% to over 2%

Summary

Market Movement:

Technology stocks rebounded strongly on Wednesday following President Donald Trump's statement at the World Economic Forum in Davos that the U.S. would not use military force to acquire Greenland. This eased geopolitical tensions that had triggered a global sell-off earlier in the week.

Sector Performance:

Chip stocks led the tech sector recovery with significant gains:

• Intel rallied 11%
• Micron Technology surged approximately 9%
• Advanced Micro Devices (AMD) jumped around 8%
• Qualcomm and Broadcom each rose at least 5%

Other major tech stocks posted modest gains, with some companies advancing 1.5-2%, though specific names beyond chips were partially redacted in the source material.

Geopolitical Context:

The rally followed heightened concerns after Trump pledged on Tuesday to impose new tariffs on eight countries opposing U.S. plans to acquire Greenland. His more conciliatory tone on Wednesday, ruling out military action, calmed investor fears. Trump is attending the World Economic Forum where agenda items include potential peace negotiations between Russia and Ukraine, alongside Greenland discussions.

Market Implications:

The sharp rebound in semiconductor stocks suggests investors were particularly sensitive to geopolitical risk in the chip sector. The quick recovery indicates markets view Trump's softer stance as reducing near-term uncertainty. However, the tariff threat on eight nations remains unresolved, presenting ongoing trade policy risk. The tech sector's volatility this week highlights its vulnerability to geopolitical headlines and policy shifts from Washington.