Wall Street experienced a significant slump, with major indexes falling over 1.8%, after President Trump threatened new tariffs on eight European countries. The move is linked to escalating tensions over his attempts to assert control over Greenland, causing widespread market losses and a surge in safe-haven assets.
Stocks slumped across Wall Street on Tuesday, marking the steepest drop for the S&P 500 since October, after President Donald Trump threatened to impose new 10% tariffs on goods from eight European nations, including Denmark, France, and Germany, starting in February. This aggressive trade move is a direct consequence of escalating tensions over Trump's attempts to assert American control over Greenland. The S&P 500 fell 2.1%, the Dow Jones Industrial Average dropped 1.8%, and the Nasdaq composite declined 2.4%, with nearly every sector losing ground. Technology giants like Nvidia and Apple, along with retailers, banks, and industrial companies, saw sharp declines. The market turmoil was global, with European and Asian markets also falling, and Japanese bond yields rising. Investors flocked to safe-haven assets, with gold surging 3.7% and silver soaring 6.9%, while Bitcoin's recent rally was short-circuited. Trump reportedly linked his aggressive stance on Greenland to not receiving the Nobel Peace Prize, telling Norway's prime minister he no longer felt 'an obligation to think purely of Peace.' This has sparked diplomatic outrage and calls for countermeasures in Europe. The tariff threats also fuel concerns about inflation, potentially complicating the Federal Reserve's monetary policy decisions as it awaits key inflation data and navigates the ongoing corporate earnings season.
