Donald Trump’s comments about nearing a deal on the Greenland issue are driving a relief rally in U.S. stocks.
- Nvidia, AMD, Micron, and Broadcom, among other chip stocks, jumped in Thursday’s premarket trading.
- The rally is an extension of Wednesday’s gains, driven by Trump’s comments about nearing a resolution on Greenland.
- Analysts and investors are tracking Intel’s fourth-quarter results, scheduled for release after the markets close.
Nvidia Corp.’s shares rose 1% in early premarket trading, tracking gains across the broader semiconductor sector, after U.S. President Donald Trump signaled that a resolution to the Greenland dispute may be near.
Advanced Micro Devices, Micron, and Broadcom stocks advanced by over 2%, while Qualcomm and Taiwan Semiconductor Manufacturing gained by over 1%.
Memory chip firms Western Digital and SanDisk were up 3.3% and 2.3%, respectively.
Semiconductor stocks posted strong gains in Wednesday’s session, after Trump’s comments at the World Economic Forum conference at Davos, Switzerland.
After weeks of pressure for a U.S. takeover of Greenland and threats of tariffs on the Arctic country and its European partners, Trump retreated. He backed off from the tariff threat, ruled out the use of force, and suggested a deal was in sight to end a dispute over the Danish territory.
Trump met with NATO Secretary General Mark Rutte and later posted on his Truth Social account that the U.S. and NATO “have formed the framework” for a deal for Greenland.
U.S. stock futures rose early Thursday, tracking the relief rally in the previous session.
For the semiconductor sector, Intel’s results after the market close would set the tone for the earnings season. Analysts expect its quarterly revenue to decline by more than 6%, after rising in the preceding two quarters.
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