Closing Bell: Markets Extend Gains as Geopolitical Risks Ease

Key Points

• Markets extended gains after the Greenland deal framework and tariff reversal, with SPX +0.55%, NDX +0.76%, and RUT +0.76%.
• Headline and core PCE held at 2.8%, slightly above October, with energy driving the uptick.
• GE beat on revenue and EPS, driven by high-margin aftermarket services, but shares fell 7.38%.

Markets extended their rally after President Trump announced a “framework for a future deal regarding Greenland” and reversed his decision to impose tariffs on NATO allies. The S&P 500 (SPX) finished 0.55% higher, the Nasdaq-100 (NDX) advanced 0.76%, and the Russell 2000 (RUT) gained 0.76% in the session. Communication Services, Consumer Discretionary, and Information Technology led the market higher, while Real Estate, Utilities, and Industrials lagged.

PCE Price Index Met Expectations

Headline PCE inflation came in-line with market expectations, with both headline and core PCE at 2.8% in November, slightly higher than the 2.7% reading in October. Energy costs contributed to the increase in headline inflation, rising 1.9% during the month. Personal spending, which grew 0.5% month over month, continues to outpace long-term averages and supports the thesis that consumer spending remains resilient. Core PCE remains above the Federal Reserve’s 2% target.

GE Aerospace Moves Lower After Earnings

GE Aerospace (GE) reported earnings that exceeded consensus expectations. Fourth quarter adjusted revenue came in at $11.87 billion versus market estimates of $11.17 billion, while adjusted EPS was $1.57 compared with the $1.43 estimate. Aftermarket parts and services drove the upside, with more than 70% of commercial engine revenue coming from these higher-margin segments. Management cited rising commodity prices as a potential headwind to input costs, noting that price increases may be necessary later this year. Despite the strong results, GE Aerospace closed 7.38% lower on the session.

Market Events for Tomorrow

• 09:45 AM ET: Flash Manufacturing PMI
• 09:45 AM ET: Flash Services PMI
• 10:00 AM ET: Revised UoM Consumer Sentiment

Notable Earnings for Tomorrow

• A.M: BAH, ERIC, SLB
• P.M: N/A

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.