Markets stabilized after President Donald Trump softened his stance on tariffs on Wednesday.

Earlier in the day at the World Economic Forum in Davos, Trump ruled out the use of force in his push for U.S. control of Greenland. That helped calm nerves, but it did not spark an immediate rally. The real shift came later.

This story is an excerpt from the Unchained Daily newsletter.

Bitcoin rebounded after Trump posted on Truth Social, saying the U.S. had reached a “framework of a future deal” with NATO and that tariffs on eight European countries would not move forward. That message directly reduced near-term trade risk, and markets reacted fast.

Bitcoin jumped roughly 3% to around $90,000, recovering from lows near $87,600 hit during the tariff-driven selloff. U.S. stocks followed, with the S&P 500, Dow, and Nasdaq each rising about 1.2%, their strongest daily gain in months.

The rebound fits a familiar pattern. Many investors continue to lean into the so-called “TACO” trade, betting that Trump’s aggressive threats are often walked back. Still, caution remains visible elsewhere.

Gold and silver sold off following the news, but are holding near record highs, with gold around $4,825 an ounce, signaling that investors are relieved, but not fully convinced the turbulence is over.