US stocks got clobbered on Tuesday in Wall Street’s worst day since October, returning to the kind of tariff-fueled routs that plagued markets last spring after President Trump reignited trade-war tensions with Europe over his ambitions to take control of Greenland.
The Dow Jones Industrial Average (^DJI) sank 1.8%, or over 800 points. The S&P 500 (^GSPC) fell by about 2%, while the Nasdaq Composite (^IXIC) retreated over 2.4% as investors fled riskier bets on the heels of a losing week for Wall Street stocks.
Tuesday’s decline has fully wiped out year-to-date gains for the Nasdaq and S&P 500.
Wall Street evaluated the risk of a full-on US-EU trade war — along with fresh concerns over the bond market — 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. The bloc could also deploy an “anti-coercion instrument” with a potential fallout of some $8 trillion for US assets.
Trump also 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.”
When asked on Tuesday how far he is willing to go to acquire Greenland, President Trump answered, “You’ll find out.”
Meanwhile, 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. Nvidia (NVDA) and Broadcom (AVGO) led Big Tech stocks down as investors rotated out of AI-linked equities, highlighting ongoing concerns over a market bubble.
Focus is now turning to the World Economic Forum in Davos, where Trump is set to hold meetings with other countries over the Greenland crisis. He is scheduled to give his key address on Wednesday.
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 after it amended its bid for Warner Bros. Discovery’s (WBD) studio to an all-cash offer on Tuesday.
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Yahoo Finance’s Brooke DiPalma reports:
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US stocks sank on Tuesday as Trump’s push for Greenland sparked fears of a trade war between the US and EU.
The Dow Jones Industrial Average (^DJI) sank 1.8%, or over 800 points.
The S&P 500 (^GSPC) dropped by about 2%, while the Nasdaq Composite (^IXIC) sank 2.4%. Bonds sold off while precious metals gained after President Trump threatened fresh tariffs on European countries in his push for Greenland.
When asked during a press conference on Tuesday afternoon how far he will go to acquire the Arctic territory, he replied, “You’ll find out.”
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When asked whether the idea of taking control of the Panama Canal is back on the table, President Trump replied, “I don’t want to tell you that,” later adding, “sort of.”
Trump had expressed interest in reclaiming the canal last year and has recently pursued the acquisition of Greenland.
He made the remarks during a press conference at the White House on Tuesday afternoon.
Watch President Trump’s press briefing here.
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Yahoo Finance’s Pras Subramanian reports:
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President Trump said tariffs against European countries were the “fastest” and “easiest” way to achieve his goal of acquiring Greenland.
“What we’re doing now is the best, the strongest, the fastest, the easiest, the least complicated,” said Trump during a press conference at the White House on Tuesday afternoon.
When asked how far the US is willing to go to acquire Greenland, President Trump answered, “You’ll find out.”
Trump said the US has “a lot” of meetings on Greenland scheduled at the World Economic Forum in Davos. Trump is expected to travel to Davos tonight.
Stocks were headed toward their worst day in two months on Tuesday as the markets digested Trump’s threats of fresh tariffs against European countries in order to obtain control of the Arctic territory.
Watch President Trump’s press briefing here.
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Netflix (NFLX) is set to report its fiscal fourth quarter earnings after the bell on Tuesday as investors are focused on the pending acquisition of Warner Bros. Discovery (WBD).
The streaming giant is expected to report revenue of $11.96 billion, per Bloomberg consensus data. That’s in line with what the company forecasted. In the fourth quarter of last year, the company posted revenue of $10.25 billion.
Adjusted earnings per share are expected to come in $0.55. That’s against Netflix’s forecasted expectation of $5.45, or $0.55 following the 10-for-1 stock split in mid-November.
Wall Street expects revenue of $45.1 billion for the full fiscal year, alongside adjusted earnings of $2.52.
For the first quarter, Wall Street expects revenue to hit $10.54 billion with adjusted earnings of $0.66.
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Treasury Secretary Scott Bessent expressed calmness on Tuesday after President Trump threatened tariffs against European countries in connection with his pursuit of Greenland.
“This is the same kind of hysteria we heard on April 2 — there was a panic,” said Bessent during a press briefing in Davos, where the World Economic Forum is taking place this week.
“What I’m urging everyone here to do is sit back, take a deep breath, and let things play out. As I said on April 2, the worst thing countries can do is escalate against the United States.”
Stocks sold off last April after President Trump announced tariffs against a slew of countries, which were later walked back substantially.
US stocks and bonds sold off on Tuesday, with yields on the 10-year Treasury rising to 4.28%, while the 30-year bond yield increased to 4.91%.
The sell-off followed Trump’s threat of new tariffs on European countries aimed at gaining control of Greenland.
“What President Trump is threatening on Greenland is very different than the other trade deals,” he added.
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Apple (AAPL) shares fell Tuesday to mirror a decline in Big Tech names, as Citi (C) analyst Atif Malik cut his price target on the stock to $315 from $330, citing a surge in cost of memory chips used in the company’s consumer devices.
“Rising memory pricing is the biggest concern on investors’ mind,” Malik said in a note to clients Monday, when trading was closed for the MLK Day holiday.
Still, Malik reiterated his Buy rating on the stock and noted the benefits of its recent AI deal with Google (GOOG). The analyst also said he believes Apple could ship millions of foldable $2,000 iPhones this year.
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Yahoo Finance’s Ines Ferré reports:
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Netflix (NFLX) shares rose less than 1% Tuesday, defying a broader pullback in US stocks, as the streaming giant is set to report quarterly results after the bell on Tuesday.
Wall Street analysts tracked by Bloomberg expect the company to report earnings per share of $0.55 for the fourth quarter, which would mark a roughly 28% increase from the previous year. Analysts project Netflix’s revenue will jump nearly 17% to about $12 billion. They anticipate the company to have added 10.9 million streaming subscribers in the period.
Netflix shares are up just 3% over the past year, lagging the S&P 500’s 14% rise. The stock dropped in October after the company’s third quarter financial results missed estimates and has continued to suffer amid concerns over its planned $72 billion acquisition of Warner Bros. Discovery (WBD), which it amended Tuesday.
Yahoo Finance’s Brian Sozzi breaks down how the WBD deal is muddying Netflix’s outlook here.
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Issuing a series of comments and social media posts overnight that doubled down on his threats to take over Greenland, President Trump set the stage for his trip to Davos, Switzerland, where he’s expected to meet with foreign leaders and deliver a speech widely expected to test the alignment of the US and European countries.
Yahoo Finance’s Ben Werschkul reports:
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Wedbush analyst Dan Ives said the market sell-off is a buying opportunity for many AI names as investors take a “risk-off” approach to the markets amid US trade tensions with the EU over the future of Greenland.
That includes some of the biggest laggards in Tuesday’s trading session, including Nvidia (NVDA), Microsoft (MSFT), Palantir (PLTR), CrowdStrike (CRWD), Nebius (NBIS), Apple (AAPL), Palo Alto (PANW), Google (GOOG), and Tesla (TSLA).
“The back and forth war of words between Trump and the EU will give investors another opportunity to own the tech winners and despite the bears always trying to yell fire in a crowded theater,” Ives, who is quite bullish on the sector, wrote in a note to clients, adding, “the AI Revolution is still in the early days of playing out.”
Ives believes the US is in the midst of the “4th Industrial Revolution” that will see its “next stage of growth in 2026.”
Tom Essaye, Sevens Report Research founder, told Yahoo Finance’s Opening Bid that “every sort of decent dip should be viewed as a buying opportunity,” though he said to wait for a further dip of 3% to 5% from the recent highs to jump in.
“Unless you are concerned that Trump will willingly enact policies that will slow the economy or hurt the markets … then you have to focus on earnings, on underlying solid economic growth, on the fact that the Fed is still likely to cut rates, probably in the first half of this year, and that AI enthusiasm is still alive and well and as long as those things are true,” Essaye said.
The tech sector ETF (XLK) was down by about 1.3% in the early trading session.
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Tech led a tumble in US stocks at the market open as President Trump’s further ignition of trade-war tensions with Europe overnight sent investors fleeing riskier bets.
The Nasdaq Composite (^IXIC) retreated 1.8%, while the S&P 500 (^GSPC) sank 1.4%. The Dow Jones Industrial Average (^DJI) fell roughly 1.2% — a drop of more than 600 points — as markets reopened for a holiday-shortened trading week after MLK Day.
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3M Company (MMM) stock sank about 4% on Tuesday morning as the Minnesota-based company beat earnings expectations but faced a broader market sell-off on the prospect of new tariffs over Greenland.
On an adjusted basis, stripping out significant one-time costs, the Post-it Note maker reported earnings per share of $1.83, compared to analysts’ forecasts of $1.80, according to S&P Global Market Intelligence. The company expected temporary charges from tariffs and stranded costs from removing PFAS materials from its products. In Q4, 3M realized $0.56 per share in net costs from litigation.
Sales grew 2.1% in Q4 to $6.1 billion, topping expectations for $6 billion in sales.
For 2026, the company expects adjusted sales growth of around 4% for full-year adjusted EPS of $8.06. Full-year operating cash flow is expected to be $2.3 billion.
“2025 was an important year for 3M as we build a strong foundation that is reshaping our operating model and driving sustainable value creation,” 3M CEO William Brown said.
Read more live coverage of corporate earnings >
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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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This week’s sudden stock market pullback might be catching a lot of investors off guard, per Bloomberg.
It reports:
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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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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:
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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:
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