New york: US stocks closed with gains as President Donald Trump decided to retract his tariff threat against European countries following the establishment of a framework deal with NATO concerning Greenland and the Arctic region. According to Anadolu Agency, this development followed Trump's meeting with NATO Secretary General Mark Rutte in Davos, Switzerland, where they discussed future cooperation regarding the Arctic.

The Dow Jones Industrial Average increased by 1.21%, adding 588.64 points to close at 49,077.23. Similarly, the Nasdaq rose by 1.18%, gaining 270.50 points to reach 23,224.82, while the S and P 500 climbed by 1.16%, or 78.76 points, ending at 6,875.62. The Volatility Index (VIX), often referred to as the "fear index," saw a significant drop of 15.88% to 16.90, indicating a decrease in market uncertainty.

Trump announced the framework agreement via his Truth Social platform, highlighting productive discussions with NATO's Rutte. Although specific details were not disclosed, Trump assured that additional negotiations are underway and confirmed the suspension of the planned tariffs, which were set to take effect on February 1st. The responsibility for these ongoing talks will involve US Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff, among others.

In response to the tariff issue, Bernd Lange, chair of the European Parliament's trade committee, stated that the European Union has paused its trade agreement work with the US. Lange announced this decision on the social media platform X, citing concerns over sovereignty and territorial integrity related to the Greenland situation and tariff threats.

Additionally, Trump mentioned nearing a decision on a new Federal Reserve Chair, suggesting he has narrowed down his choice. This follows his ongoing criticism of current Chair Jerome Powell, which he reiterated during his speech at the World Economic Forum in Davos.