
U.S. stock futures showed a sharp decline as investors reacted to President Trump’s escalating rhetoric over Greenland and fresh tariff threats against countries opposing a U.S. Plan to overtake the territory. Dow futures signaled a drop of nearly 360 points, while S&P 500 and Nasdaq 100 futures were down more than 1%.
Trump said tariffs on imports from eight NATO countries would start at 10% in February and rise to 25% by June unless a deal on Greenland is reached. The trade escalation is being priced in after the holiday, adding to market uncertainty already heightened by a pending Supreme Court decision on the legality of Trump’s tariff powers.
Investors now turn their focus to key corporate earnings and guidance to support valuations.
In the Forex market, EUR/USD rose 0.2% today reaching to around 1.1673 as the US Dollar weakened amid rising risk aversion triggered by President Trump’s escalation of trade tensions with Europe over Greenland. New US tariffs threats pushed investors away from the dollar, sending the Dollar Index below 99.00, while the euro rebounded from recent lows.
Gold climbed for a second consecutive session, breaking above $4,700 to hit a fresh all-time high as investors sought safety amid persistent geopolitical and trade risks. Ongoing tensions from the Russia Ukraine war and rising fears of a US–Europe trade conflict over Greenland boosted demand for the safe haven metal.
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