U.S. stocks rose for a second straight day, creating a relief rally on Wall Street as President Trump signaled a retreat from his controversial Greenland acquisition push. The move provided a market-friendly backdrop, easing geopolitical tensions that had unsettled investors earlier in the week.

AI names and chip stocks led the advance, with semiconductor shares jumping ahead of Intel’s earnings report. This sector momentum underscores the market’s continued reliance on tech giants to drive gains, even as broader economic data remains mixed. The rally’s breadth was narrow, concentrated in mega-cap growth names.

The session also featured notable corporate drama, with new twists in the Warner Bros.-Paramount merger saga and Elon Musk sharing the Davos stage with BlackRock’s Larry Fink. These events highlight the ongoing consolidation in media and the outsized influence of tech titans in global finance.

Looking ahead, investors will parse Intel’s results for clues on the AI chip demand cycle. The market’s resilience suggests optimism, but the rally’s narrowness and reliance on a few names leaves it vulnerable to any negative surprises from earnings or geopolitical headlines.