Wall Street's major indexes closed higher for a second straight day on Friday as investors returned to buying stocks after US President Donald Trump canceled his threat to impose tariffs on the European Union (EU).
The decision came after the EU approved a framework agreement that would allow Washington to take over Greenland.
The increase came a day after the S&P 500 index recorded its biggest daily gain in two months.
In terms of market performance, the Dow Jones index rose 0.63% to 306.78 points, the S&P 500 jumped 0.55% to 37.73 points and the Nasdaq Composite strengthened 0.91% to 211.20 points.
At the same time, all major stocks of the 'Magnificent Seven' showed positive performance yesterday with Meta recording the highest jump of 5.7%, followed by Tesla which rose 4.2%.
Banking stocks also performed well in response to earnings, although Huntington Bancshares fell 6% after posting fourth-quarter numbers that were weighed down by recent acquisition-related costs.
Procter & Gamble rose 2.6% after the company reported quarterly results that beat expectations and Intel edged up 0.1% to bring its 2026 profit outlook to 47.2%.
Abbott shares fell 10%, their biggest daily percentage drop since 2002, after the medical device maker forecast its current-quarter profit to fall short of Wall Street expectations.
Turning to U.S. economic data, the Personal Consumption Expenditures (PCE) Index for October and November of last year rose, potentially keeping the economy on track for a third straight quarter of strong growth.
Separate data showed initial jobless claims rose slightly more than expected last week, while the U.S. economy grew at a 4.4% pace in the third quarter of 2025, higher than previously estimated.
