Wednesday`s roller-coaster ride started after President Donald Trump said that he would not use force to seize Greenland.

Global markets swung sharply Wednesday, gaining back some ground from Tuesday`s dip but remaining volatile amid escalating rhetoric from President Donald Trump over control of Greenland.

The dramatic ups and downs mark a return to the early days of Trump`s "Liberation Day" tariffs that sent the world into a period of prolonged uncertainty over the future of international trade. And while markets broadly recovered throughout most of last year, Trump`s move on Greenland - and renewed threats of tariffs - have rattled most equity and bond markets.

Wednesday`s roller-coaster ride started after Trump said that he would not use force to seize Greenland. That sent many stocks higher, but those gains quickly disappeared after the European Union said it would stop moving forward with implementing a key trade deal with the U.S.

As of midday trading, the S&P 500 was up only 0.2% after soaring more than 1.2%. The Nasdaq Composite was flat after rallying nearly 1.5%. The Dow Jones Industrial Average was higher by around 160 points, or 0.3%, after earlier jumping more than 530 points.

"We probably won`t get anything unless I decide to use excessive force and strength," Trump said during a speech before world leaders at the World Economic Forum in Davos, Switzerland, "but I won`t do that."

Bond markets, which have taken on a particular focus for market watchers as a gauge of concern about U.S. action, were not as responsive. Yields on U.S. Treasurys, which rose on Tuesday in a sign of investor unease, were nearly flat in late-morning trading.

European markets were also volatile after two straight days of selling. On Thursday, European leaders will hold an extraordinary meeting of the European Council to discuss possible retaliation against the U.S.

That response could include more than $100 billion worth of retaliatory tariffs or triggering the bloc`s so-called "trade bazooka," which has never before been used.

Trump was set to have about five bilateral meetings while in Davos, which could be with some E.U. leaders, a White House official said.

Benchmark stock indexes in Italy, the U.K. and France closed mixed after initially jumping and turning positive on Trump`s speech. The pan-European STOXX 600 ended the session slightly higher after also losing momentum. Earlier in the European trading session, and before Trump`s comments, all of the indexes were significantly lower.

Meanwhile, oral arguments at the Supreme Court over the future of Federal Reserve governor Lisa Cook, whom Trump has tried to fire, also have some ramifications for U.S. markets. Deutsche Bank`s Jim Reid called the arguments "an important one."

"These initial lines of arguments will be important to follow," he wrote on Wednesday.

Charles Schwab strategist Joe Mazzola said, "It could be another volatile day and investors should consider treading carefully until things stabilize," noting that the Cook case will likely loom large for traders.

Gold, a "safe haven" for investors in times of unease, continued rising on Wednesday. As of 11:10 a.m. ET, the precious metal was up nearly 2%, bringing its gains for the year to more than 12%. Precious metals have been soaring over the last year amid disruptive trade policies and geopolitical tensions.

Since this time last year, the price of gold has risen more than 75%.

Speaking on a panel in Davos on Wednesday morning, JPMorgan Chase CEO Jamie Dimon said keeping the Western world together was important.

The chief of America`s largest bank said he believed a stronger Europe and NATO was critical. "I still think that`s the best thing, to keep the Western world together," Dimon remarked. "That would be my goal: make the world safer and stronger for democracy so that we don`t read that book 40 years from now, ‘How the West lost.`"

But, Dimon said, "I would be more polite" about criticizing Europe and "about the weaknesses of Europe."