Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed higher on Thursday as investors were able to breathe a sigh of relief from President Trump decision to withdraw new tariffs on eight European countries. The reversal came after he announced a framework deal to acquire land in Greenland.
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The deal to acquire the self-governing territory is still in the works. However, it reportedly includes terms to provide the U.S. with mineral rights and ownership of small pockets of land for military use while allowing Denmark to remain in control.
The removal of the tariffs has put the U.S.-EU trade deal back on track, with a ratification vote on the agreement coming as soon as this month. The deal exempts most U.S. products from tariffs while placing a 15% tariff on most EU exports and a 50% duty on steel and aluminum.
Meanwhile, the Bureau of Economic Analysis’ (BEA) second estimate of third-quarter gross domestic product (GDP) showed an annualized growth rate of 4.4%, higher than the expectation of 4.3% and reaching the highest level since the third quarter of 2023. The BEA’s first estimate showed 4.3% growth. The upward revision was driven by a 3.5% increase in consumer spending, which accounts for about two-thirds of GDP. Higher investments, exports, and government spending also contributed to the growth.
In another report, the BEA said that consumer spending grew by 0.5% month-over-month in both October and November. Purchases of financial services, healthcare, insurance, gas, and other energy items contributed to the growth.
The economic data didn’t stop there, with November’s personal consumption expenditures (PCE) index increasing by 2.8%, matching the consensus estimate and rising from 2.7% in October. Core PCE, which excludes volatile food and energy items, was 2.8% and in line with the estimate as well. The PCE index tracks changes in the prices paid by consumers for goods and services, while core PCE is the Fed’s preferred gauge of inflation.
Finally, Trump warned that Europe would face “big retaliation” if it decides to dump U.S. assets. Between April and November 2025, European investors accounted for the majority of U.S. Treasury purchases, making up roughly 80% of all foreign buying, according to Citi (C). In addition, Europe holds nearly 40% of all U.S. Treasuries owned by foreign investors.
The S&P 500 (SPX) closed with a 0.52% gain, while the Nasdaq 100 (NDX) returned 0.76%.