U.S. stock futures point to big losses on Jan. 20 as President Donald Trump ratchets up his threats to take Greenland by force and impose new tariffs on any countries that oppose him.
The blue-chip Dow Jones Industrial Average is tracking for a 700-point loss, while the benchmark S&P 500 index looks likely to open down nearly 2%.
The technology-laden Nasdaq (NDAQ) is facing a loss of nearly 500 points or about 2%. At the same time, U.S. Treasury yields are higher as investors assess the Greenland situation.
Yields on the benchmark 10-year Treasury are up six basis points at 4.287%. Yields on longer-dated 20- and 30-year Treasurys are up nine basis points at 4.885% and 4.93%, respectively.
The volatility comes after Trump announced that eight European countries and NATO members will face escalating tariffs until a deal is reached allowing America to acquire Greenland.
The tariffs will start at 10% on Feb. 1 and rise to 25% on June 1, Trump said.
The countries facing new tariffs are Denmark, Norway, Sweden, France, Germany, the United Kingdom (U.K.), the Netherlands, and Finland.
The European Union (EU) is reportedly considering an economic response to Trump’s threats, raising the prospect of an all-out trade war between the U.S. and Europe, rattling markets.
Trump has also threatened to slap 200% tariffs on French wines and champagne after President Emmanuel Macron said he is unwilling to join America’s “Board of Peace for Gaza.”
All the drama has also shaken stocks in Europe, with shares of carmakers and luxury goods companies down sharply. Although defense stocks are rising amid the standoff in Greenland.
Trump, who is due to speak at the World Economic Forum in Davos, Switzerland, on Jan. 21 said he will meet with European leaders at the conference to discuss Greenland.
Markets also appear to be jittery as corporate earnings for the fourth quarter of 2025 get underway, and with the U.S. Supreme Court set to rule in the coming days on whether to strike down Trump’s earlier round of tariffs.
Tech Insider
