Trump Greenland Deal 2026: Markets Hit Record Highs as President Rules Out Force

The small-cap Russell 2000 just hit a fresh record. Why? President Trump's surprising diplomatic shift on Greenland has sparked a relief rally across Wall Street. After weeks of tension, the administration's pivot from military rhetoric to a resource-based framework has sent major averages up more than 1%.

The Trump Greenland Deal 2026: Diplomacy Over Force

Speaking at the World Economic Forum in Davos, Trump declared he "won't use force" to acquire the Danish territory. According to CNBC, the President reached a tentative framework with NATO Secretary General Mark Rutte. This "concept of a deal" focuses on mineral rights and a strategic "Golden Dome" project rather than annexation, leading to the immediate withdrawal of planned tariffs on several European nations.

Fed Independence and Financial Industry Pushback

Central bank autonomy is back in the spotlight. The Supreme Court appeared skeptical of Trump's attempt to fire Fed Governor Lisa Cook. Justice Brett Kavanaugh noted that allowing such firings without review would "shatter the independence of the Federal Reserve."

Meanwhile, JPMorgan Chase CEO Jamie Dimon didn't mince words regarding Trump's proposal for a 10% credit card interest rate cap. Calling it an "economic disaster," Dimon joined a chorus of banking leaders worried about government intervention in lending markets.

Earnings Watch: P&G Misses, Intel Soars

Procter & Gamble shares fell 1.5% in premarket trading after a narrow revenue miss, despite beating earnings estimates. Conversely, Intel surged 11% as investors anticipated its afternoon report, marking its highest level since early 2022.