Equity indices closed sharply higher yesterday. The S&P 500 rose by 1.16%, while the Nasdaq 100 gained 1.18%. The Dow Jones Industrial Average jumped by 1.21%.

Global equity markets recovered after President Donald Trump stepped back from threats to impose tariffs on Europe, easing fears of a renewed trade war.

The unexpected reversal sparked a wave of optimism from Tokyo to New York. Investors, who had been in a state of anxious waiting, renewed faith in the prospects for global growth supported by relatively stable trade relations. Tech stocks, typically sensitive to shifts in trade policy, stood out on the upside. Strength in shares of large IT firms pulled broader indices higher, signaling a return of risk appetite and confidence in innovation. Still, despite the prevailing optimism, market participants should remain cautious: Trump's reprieve on tariffs may be temporary, and any renewed dispute over Greenland could trigger another sell-off.

European equity futures rose by more than 0.7% after Asian markets followed Wall Street higher on the back of Trump's comments. US index futures also advanced, signalling the possibility of a sustained rally.

As noted above, shares of global semiconductor suppliers rose after Nvidia CEO Jensen Huang's remarks in Davos helped bolster investor enthusiasm for the AI market. Supplier Disco Corp. shares jumped by 17% in Japan, while Samsung Electronics Co. climbed by 1.9%.

Regarding Greenland, Trump did not specify the terms of the so?called "framework agreement," leaving the deal's details unclear. On Wednesday, Denmark also ruled out talks about transferring the semi?autonomous island to the United States. Events around Greenland have pushed equity markets back toward their prior trajectory: markets are now seeking further gains amid growing optimism about a renewed acceleration in US economic growth.

Asymmetric Advisors Pte said that Trump's appearance in Davos had provided some relief because it had become clear the US would not carry out any military operation to invade Greenland, and added that overall, it was a fairly good outcome from a market perspective.

On the technical front for the S&P 500, today's main task for buyers is to overcome the resistance level of $6,883. Breaking above this mark would signal upside momentum and open the way toward a new target of $6,896. Equally important for bulls will be maintaining control above $6,914, which would reinforce buyers' positions. In case of a downside move amid waning risk appetite, buyers will need to step in around $6,871. A break below that level would quickly send the instrument back toward $6,854 and open the door to $6,837.