Wall Street Rallies: Tariffs Scrapped, GDP Hits 4.4%

Gotrade News - Wall Street is buzzing again, with the S&P 500 ETF (SPY) and Nasdaq 100 closing in the green. This surge comes after President Trump made a strategic U-turn, deciding to withdraw planned new tariffs on European countries.

This move effectively cools down the simmering trade war fears that had investors on edge.

Key Takeaways:

• Trump scraps EU tariffs following a framework deal regarding Greenland.

• US Q3 GDP growth is revised upward to 4.4% on the back of strong consumer spending.

• November PCE inflation holds steady at 2.8%, matching market consensus.

The policy shift follows reports of a preliminary framework deal regarding mineral rights and military access in Greenland. According to TipRanks, this arrangement allows the US to secure its strategic interests without needing a full transfer of sovereignty.

With the tariffs off the table, the US-EU trade deal is back on track for ratification this month. Most US products will enjoy tariff exemptions, though certain EU exports will still face a 15% duty.

Domestic Economy Flexes Its Muscles

Bullish sentiment on Wall Street is further fueled by economic data that smashed expectations. The Bureau of Economic Analysis (BEA) reported that third-quarter GDP grew at an annualized rate of 4.4%.

This figure beats the initial estimate of 4.3%, largely driven by a robust increase in consumer spending. Higher investments, exports, and government spending also pitched in to keep the economic momentum solid.

Consumption data confirms this trend, with spending growing by 0.5% in both October and November. The BEA report highlights that purchases in financial services, healthcare, and energy were the main drivers of this activity.

On the flip side, inflation remains a watching brief. The Personal Consumption Expenditures (PCE) price index for November ticked up to 2.8%. Core PCE—the Fed’s preferred inflation gauge—also came in at 2.8%, landing right in line with analyst estimates.

Despite the easing trade tensions, Trump issued a warning: Europe could face "big retaliation" if investors there start dumping US assets. Data from Citi shows that European investors have been heavy buyers of US Treasuries between April and November 2025.

Want to Ride This Wall Street Momentum?

The US market is reacting positively to strong economic data and the de-escalation of global trade risks.

The S&P 500 ETF (SPY) gives you instant exposure to 500 of the biggest companies driving Wall Street. With EU tariffs scrapped, the headwinds for these multinational giants have just dropped significantly.

That’s the market update worth watching today. Follow Gotrade News for timely coverage on US stocks, ETFs, and macro moves that shape market direction. For a structured starter guide, visit the Gotrade Investing Guide to learn the basics and build your plan.

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Reference:

• TipRanks, Stock Market Today: SPY, QQQ Rally on Trump’s Greenland U-Turn as Inflation Inches Higher. Diakses pada 22 Januari 2026

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