Volatility on Wall Street arose as traders reacted to President Donald Trump's remarks about his efforts to take control of Greenland. Early gains followed his speech at the World Economic Forum in Davos, where he ruled out using military force, emphasizing negotiations with Denmark instead. Trump said he didn't want or need to use 'excessive strength,' calling for 'immediate negotiations' to discuss Greenland's acquisition by the U.S.

However, morning optimism faded amid ongoing trade concerns between the U.S. and Europe. Buying interest returned in the afternoon after Trump posted on Truth Social that a 'framework' for a Greenland deal had been formed during a 'very productive' meeting with NATO Secretary General Mark Rutte, leading him to withdraw his tariff threats against European nations.

Oil service stocks turned in some of the market's best performances amid an uptick by the price of crude oil, with the Philadelphia Oil Service Index soaring by 4.8% to its best closing level in over a year. Computer hardware stocks displayed substantial strength, as reflected by the 4.4% surge by the NYSE Arca Computer Hardware Index. Biotechnology stocks too showed significant move to the upside, driving the NYSE Arca Biotechnology Index up by 3.6%. Semiconductor, transportation and housing stocks also saw considerable strength, while software and gold stocks bucked the uptrend.

Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index fell by 0.4%, while Hong Kong's Hang Seng Index rose by 0.4%. The major European markets also ended the day mixed while the German DAX Index slid by 0.6%, the French CAC 40 Index and the U.K.'s FTSE 100 Index both inched up by 0.1%.

In the bond market, treasuries regained ground after moving sharply lower over the past few sessions. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, decreased by 4.2 bps to 4.25%.

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