Stocks Rally, Volatility Curbed as Trump Walks Back Levy Threat

US stocks rallied Wednesday after US President Donald Trump said he’d reached a “framework” with NATO for a future Greenland deal.

The S&P 500 Index rose 1.2%, while the Nasdaq 100 climbed 1.4% and the Russell 2000 Index jumped 2.0% to close at a record. Anxiety cooled across Wall Street as the Cboe Volatility Index or VIX, fell to 17.

In a social media post Wednesday, the US president backed down from imposing tariffs on European countries that opposed his effort to take possession of Greenland. President Trump announced the decision after a meeting with North Atlantic Treaty Organization Secretary General Mark Rutte at the World ...