US stock futures rebounded on Wednesday with the S&P 500 index posting its biggest daily jump in two months.
The gains were supported by the European Union's (EU) approval of Washington's deal to take over Greenland.
The announcement could potentially cancel President Donald Trump's plan to impose tariffs on European countries.
Trump had previously threatened to impose a 10% tariff on goods from Sweden, France, the Netherlands, Denmark, Germany, Norway, Finland and the United Kingdom if no agreement was reached between the two sides on the issue.
However, he withdrew the warning after his desire to take control of Greenland was approved by the EU.
In a post on the Truth Social Platform, Trump said that the US had drawn up a future deal on Greenland, thus hinting that the tariffs would not take effect on February 1.
Wall Street was generally positive after investors sold off stocks on Tuesday ahead of the EU-US Greenland deal being finalized.
In terms of market performance, the Dow Jones rose 1.21% to 588.64 points, the S&P 500 jumped 1.16% to 78.76 points and the Nasdaq Composite rose 1.18% to 270.50 points.
Meanwhile, United Airlines shares rose 2.2% after the airline issued an upbeat outlook for the current quarter.
The positive sentiment led to gains in Delta Air Lines, American Airlines and Southwest shares, which rose between 6.5% and 4.5% respectively.
Meanwhile, Netflix shares fell 2.2% after the firm reported its latest earnings results that were less than impressive.
