What Happened?

A number of stocks jumped in the afternoon session after President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies. 

The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off. Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. 

The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Project Management Software company Atlassian (NASDAQ: TEAM) jumped 3.3%. Is now the time to buy Atlassian? Access our full analysis report here, it’s free.
• Advertising Software company The Trade Desk (NASDAQ: TTD) jumped 3.4%. Is now the time to buy The Trade Desk? Access our full analysis report here, it’s free.
• Communications Platform company Bandwidth (NASDAQ: BAND) jumped 2.7%. Is now the time to buy Bandwidth? Access our full analysis report here, it’s free.

Zooming In On The Trade Desk (TTD)

The Trade Desk’s shares are very volatile and have had 27 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 16 days ago when the stock gained 5.3% on the news that investor attention turned to the annual CES 2026 technology conference in Las Vegas, with artificial intelligence emerging as a central theme. Attention shifted to tech giants, whose CEOs would headline the event. This focus continued the AI-fuelled momentum that drove market gains the previous year. The rally had global reach, with an MSCI Asia Pacific Index surge being driven by heavyweight chip names like Samsung and Taiwan Semiconductor Manufacturing Company. The event reinforced investor confidence in the long-term demand for the booming AI and chipmaking trend, boosting shares of companies across the semiconductor and technology space.

The Trade Desk is down 6.2% since the beginning of the year, and at $35.33 per share, it is trading 71.6% below its 52-week high of $124.50 from January 2025. Investors who bought $1,000 worth of The Trade Desk’s shares 5 years ago would now be looking at an investment worth $434.55.

Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.