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postUS stocks were poised for hefty losses on Tuesday after President Trump reignited trade-war tensions with Europe over Greenland, as a Japan-led global bond sell-off reverberated through markets.
Dow Jones Industrial Average futures (YM=F) tumbled roughly 1.3%, pointing to a drop of nearly 600 points when markets reopen from Monday’s holiday shutdown. S&P 500 futures (ES=F) sank 1.3%, while Nasdaq 100 futures (NQ=F) retreated 1.6% on the heels of a losing week for Wall Street stocks.
Investors are facing a rocky return to trading as the risk of full-on US-EU trade war rattles nerves just as earnings season gets going.
Over the weekend, Trump said eight NATO countries would face extra import duties of 10% unless the US got a deal on a purchase of the Danish territory. On Monday, he doubled down on his pursuit of Greenland even as the EU discussed $108 billion in retaliatory tariffs. It could also deploy an “anti-coercion instrument” with a potential fallout of some $8 trillion for US assets.
Trump then threatened on Monday to put a 200% import tariff on France’s wines after its leader Emmanuel Macron turned down the US president’s invitation to join his “Board of Peace.”
The EU’s response to these threats will be “unflinching, united, and proportional,” European Commission leader Ursula von der Leyen warned on Tuesday, keeping tensions high.
Treasury yields jumped to their highest levels in four months as a sell-off in Japanese bonds added pressure on US debt. In other assets, the dollar (DX-Y.NYB) fell to a two-week low as the “Sell America” trade returned, and haven seekers drove gold (GC=F) and silver (SI=F) to yet more record highs.
Focus is now turning to the World Economic Forum in Davos, where Trump is reportedly set to hold a meeting with other countries over the Greenland crisis. He is scheduled to give his key address on Wednesday.
Looking ahead, the Supreme Court may rule as soon as this week on whether Trump’s use of emergency powers to impose sweeping tariffs is constitutional.
Investors are also bracing for a busy earnings slate, with results from Netflix (NFLX) due after market close on Tuesday. The streaming giant’s stock edged up, bucking the premarket trend after it amended its bid for Warner Bros, Discovery’s (WBD) studio to an all-cash offer on Tuesday.
LIVE 9 updates
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Big Tech sinks as investors flee riskier assets
Big Tech and AI stocks dropped in premarket trade Tuesday as investors rotated out of riskier bets amid President Trump’s escalation of trade war tensions with Europe.
Nvidia (NVDA), Microsoft (MSFT), Meta (META), and Oracle (ORCL) fell around 2%.
Alphabet (GOOGL), Broadcom (AVGO), Tesla (TSLA), and Amazon (AMZN) sank almost 3%.
Nvidia-backed AI cloud and data center names Nebius (NBIS) and CoreWeave (CRWV) plunged over 5%.
Apple (AAPL) shares dropped more modestly — just over 1%.
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Wall Street’s calm is shattered by Greenland and Japan shocks
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Investors are unprepared for a correction in stocks, BofA survey shows
This week’s sudden stock market pullback might be catching a lot of investors off guard, per Bloomberg.
It reports:
Read more here.
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Premarket trending tickers: Hawaiian Electric, D.R. Horton, and Strategy
Hawaiian Electric (HE) stock fell 5% before the bell on Tuesday after receiving a Sell rating and a $12.50 price target from Jefferies analysts.
D.R. Horton (DHI) stock fell 3% during premarket hours after reporting lower first quarter profit as affordability concerns continued to put off home buyers, hurting the company’s sales.
Strategy (MSTR) stock dropped 4% before the bell today. Strategy, which is one of the largest corporate holders of bitcoin, saw its shares fall on Tuesday, as bitcoin (BTC-USD) edged lower.
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Treasurys join global bond slide after Japan triggers sell-off
Treasury prices fell, pushing yields to the highest in more than four months as a fierce sell-off in Japanese bonds spilled over into global debt markets.
Bloomberg reports:
Read more here.
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RAPT stock skyrockets on $2.2 billion GSK acquisition
British pharma giant GSK (GSK, GSK.L) has agreed to buy RAP Therapeutics (RAPT) in a $2.2 billion deal that will bolster its food allergy treatments.
Shares of the US-based biotech rocketed over 60% higher before the bell on news of the acquisition. GSK’s US-listed stock traded little changed.
Reuters reports:
Read more here.
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Treasurys join global bond slide as tariff angst grips markets
Treasurys fell early on Tuesday as President Trump’s tariff threats over Greenland dimmed the allure of US assets and ignited concerns the duties on European imports would add to inflationary pressures.
Bloomberg reports:
Read more here.
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Gold holds just below record price as Greenland insecurity buoys haven demand
Bloomberg reports:
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Oil prices hold as EU-US trade concerns build in response to Greenland push
Bloomberg reports:
Read more here.
