All three Wall Street benchmarks vaulted higher on Wednesday afternoon, in the wake of news that a framework for an agreement on Greenland had been reached, averting the possibility of new U.S. tariffs on European allies.

“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote on his Truth Social platform. “Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”

Wall Street benchmarks, which had been trading in positive territory at the time of the announcement, jumped on the news.

At 3:06 p.m. Eastern time, the Dow Jones Industrial Average .DJI rose 732.01 points, or 1.51%, to 49,220.6, the S&P 500 .SPX gained 103.68 points, or 1.53%, to 6,900.54 and the Nasdaq Composite .IXIC gained 386.98 points, or 1.69%, to 23,341.31.

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(Reporting by Sruthi Shankar and Pranav Kashyap in Bengaluru and David French in New York; Additional reporting by Johann M Cherian; Editing by Krishna Chandra Eluri and Shilpi Majumdar)