Stocks suffered big losses Tuesday after President Donald Trump intensified his rhetoric on Greenland, threatening to impose new tariffs on countries opposing the sale of the Danish territory to the United States.
The Dow Jones Industrials toppled 674.03 points to begin Tuesday at 48,685.30
The S&P 500 forfeited 96.14 points to 6,843.83.
The NASDAQ dropped 385.93 points to 23,129.46.
Monday, markets in the U.S. were closed for Martin Luther King Day.
Tuesday was set to be a broad selloff with few stocks higher in early trading. Technology shares, most at risk from a move by investors into safe havens and a spike in yields slowing the economy, led the losses. Nvidia, AMD and Alphabet were all off by more than 2%.
This week, quarterly financial results are expected from a range of companies, including Netflix, Charles Schwab, Johnson & Johnson and Intel.
Guidance from companies this year is crucial to sustain bullish sentiment for U.S. stocks. The S&P 500 is already expected to post earnings growth of 12% to 15%.
Trump announced in a Truth Social post on Saturday that eight NATO members’ U.S. imports will face escalating tariffs “until such time as a Deal is reached for the Complete and Total purchase of Greenland.” The tariffs will start at 10% on Feb. 1 and rise to 25% on June 1, Trump said.
Trump then threatened to impose 200% tariffs on French wines and champagne, amid reports that the country’s president, Emmanuel Macron, is unwilling to join his so-called Board of Peace.
Trump also hit out at the U.K., labeling the British government’s plan to hand over sovereignty of the Chagos Islands — one of which is the site of a U.K.-U.S. military base — to Mauritius as an “act of great stupidity.”
He said the move was “another in a very long line of National Security reasons why Greenland has to be acquired.”
Prices for the 10-year Treasury withered, lifting yields to 4.29%, from Friday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices gained 96 cents to $60.40 U.S. a barrel.
Gold prices shot higher 96 cents to $4,742.40.
