Morning Bid: Davos détente

• Trump struck a deal with NATO on Greenland that removes the February 1 tariff threat, though details remain sparse and the agreement will not involve a U.S. takeover of the territory
• Gold remains elevated above $4,800 per ounce despite slipping from Wednesday's all-time high of $4,887.82, reflecting ongoing geopolitical tensions
• The Supreme Court signaled it would not support Trump's attempt to fire Fed Governor Lisa Cook, with justices noting that easy dismissals would 'weaken, if not shatter' Fed independence

Market Summary: Davos Détente

Key Developments

Global markets rebounded Thursday after President Trump reversed course on Greenland tariff threats, though the four-day drama highlighted increasing policy unpredictability. The pan-European STOXX index rose over 1% in early trading, following the S&P 500's 1.16% gain Wednesday—its largest increase in two months. The VIX volatility index retreated from Tuesday's year-to-date high.

Trade & Geopolitical Implications

Trump struck a deal with NATO Secretary-General Mark Rutte regarding Greenland, removing the February 1 tariff threat. Details remain sparse, though the agreement will focus on guarding against threats and will not involve a U.S. takeover. European diplomats cautioned the dispute isn't fully resolved, suggesting continued uncertainty.

Key Market Movements

• Gold slipped from Wednesday's all-time high of $4,887.82/ounce but remained elevated above $4,800
• Treasury yields retreated following a successful 20-year bond auction
• South Korean stocks surged nearly 20% year-to-date, making it the best-performing index globally
• Intel shares jumped 12% Wednesday ahead of Thursday's earnings report; other chipmakers also rallied

Policy & Economic Data

The U.S. Supreme Court signaled opposition to Trump's attempt to fire Fed Governor Lisa Cook, with Justice Kavanaugh noting dismissals would undermine Fed independence. The Federal Reserve is expected to hold rates steady at January's meeting. Thursday's data releases include Q3 GDP revision, weekly jobless claims, and November's PCE inflation index—the Fed's preferred inflation gauge.

Corporate Earnings

Major earnings reports due Thursday include Intel, Abbott Laboratories, Freeport-McMoRan, General Electric, and Procter & Gamble.