Markets rallied sharply after President Donald Trump signaled a retreat from planned European Union tariffs tied to Greenland, easing global trade tensions and reigniting the buy-the-dip strategy in early 2026.

Following a meeting at the World Economic Forum in Davos, Trump announced a new “framework” deal on Greenland, removing the threat of EU tariffs and triggering a relief rally across U.S. stocks. Wealth managers told Benzinga that the rapid de-escalation reduced policy uncertainty, allowing the bull market to reassert itself.

The rally wasn’t limited to AI stocks. Gains spread into value sectors, financials, and energy, while major indexes including the S&P 500, Nasdaq 100, and Dow Jones turned positive for the year. This move reinforced investor confidence that short-lived geopolitical shocks continue to create buying opportunities.

This video breaks down what changed, why markets reacted so quickly, and what the Greenland framework signals for investors navigating volatility in 2026.