US Stock Market Plunges Amid Trump’s Greenland Tariff Threats

Introduction

On January 20, 2026, the US stock market witnessed a significant decline due to President Donald Trump’s tariff threats against European countries over the control of Greenland. The Dow Futures fell by 1.61% to 48,751 points, while the S&P 500 Futures Index sank 1.73% to 6,856 points. The tech-centric Nasdaq futures index was the worst hit, diving more than 2% to 25,157 points.

Economic Impact

The tariff threats have sparked concerns among investors, leading to a ‘Sell America’ sentiment in the market. The US economy could feel the pain of a potential trade war, with the technology sector being particularly affected. Companies like Nvidia, Amazon, and Meta are trading sharply lower. The performance of ‘Golden Dome’ contractors and the resilience of the US healthcare supply chain will be crucial in determining the market’s health.

Long-term Trends

The ongoing tensions between the US and Europe over Greenland could lead to a prolonged trade war, affecting the global economy. The US Federal Reserve’s next policy meeting, scheduled in two weeks, will be closely watched for any decisions on interest rates. The Fed’s preferred inflation gauge, the Personal Consumption Expenditures report, will also be released soon, providing insights into the US economy’s inflationary pressures.

Social Impact

The trade war could have far-reaching social implications, including job losses and higher prices for consumers. The ‘Sell America’ sentiment could also lead to a decline in investor confidence, affecting the overall economic growth. The US Treasury Secretary’s assertion that America’s relations with Europe remain strong may not be enough to alleviate the concerns of investors and consumers.

Global Markets

Global markets are also feeling the heat of the US-Europe trade tensions. European markets shed more than 1% on Tuesday, with the pan-European STOXX Europe 50 falling 1.32%. The London Stock Exchange’s benchmark FTSE 100 index sunk 1.32%, while Germany’s DAX and France’s CAC 40 fell 1.37% and 1.20%, respectively. The dollar is at a week low, and the ‘Sell America’ trade is gaining momentum.