Overview
- President Trump warned that imports from eight European countries would face a 10% tariff from February 1, rising to 25% on June 1, unless a deal is reached for the United States to acquire Greenland.
- The Dow fell about 870 points, the S&P 500 dropped 2.06% and turned negative for 2026, and the Nasdaq lost 2.39% in the worst session since October.
- Volatility hit two‑month highs as gold set a record above roughly $4,700 per ounce, while bitcoin slid below $90,000 alongside broader crypto declines.
- European leaders weighed countermeasures, with reports of an emergency Brussels meeting and potential retaliatory tariffs on up to €93 billion of U.S. goods as Davos looms.
- Flows rotated away from U.S. equities with tech megacaps leading losses, and emerging‑market stress showed in Argentine dollar bonds falling and risk premium rising to about 570 basis points.