Dow Jones Industrials slides above 600 points as US-Greenland standoff knocks sentiment

The Dow Jones Industrial Average tumbled more than 600 points on Tuesday as investors reacted to fresh tariff threats from President Donald Trump against Europe amid a dispute over Greenland.

US traders returned from a market holiday to a risk-off wave already in motion, pushing gold to record highs, dragging stocks lower globally, and putting US government bonds under renewed selling pressure.

Trump announced on Saturday that an additional ten per cent import tariff would take effect on February first on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Great Britain. The tariffs would rise to twenty-five per cent on June first and remain until a deal is reached for the United States to purchase Greenland. Leaders of Greenland, an autonomous territory of Denmark, and Denmark itself have insisted the island is not for sale.

“We’re seeing weakness because the headlines are driving angst and concern about the future,” said David Lundgren, chief market strategist at Little Harbor Advisors.

Investors have been moving away from the major mega-cap technology stocks toward small- and mid-cap companies and possibly diversifying away from US markets into underperforming overseas markets, Lundgren noted.

Market movers

Critical Metals, which has a strategic presence in Greenland, rose two per cent. The Volatility Index hit a two-month high at nineteen points. At nine thirty-nine am, the Dow Jones Industrial Average fell six hundred three points, or about one per cent, to forty-eight thousand seven hundred fifty-two. The S&P Five Hundred lost ninety points, or about one per cent, to six thousand eight hundred fifty, and the Nasdaq Composite dropped three hundred sixty-eight points, or about two per cent, to twenty-three thousand one hundred forty-eight.

Data and earnings calendar

Investors are entering a packed week with key economic reports, including the third-quarter US gross domestic product update, January purchasing managers index readings, and the personal consumption expenditures report, the Federal Reserve’s preferred inflation gauge

Earnings season heats up this week with major companies such as Intel and Netflix reporting. Netflix gained two point one per cent after switching to an all-cash offer for Warner Bros. Discovery’s studio and streaming assets without raising its eighty-two point seven billion dollar bid. Netflix was the only mega-cap technology stock among Meta, Apple, Amazon, and Google to trade in positive territory

Meanwhile, Three M fell three per cent after forecasting annual adjusted profits slightly below Wall Street estimates. Of the thirty-three S&P Five Hundred companies that had reported as of Friday, eighty-four point eight per cent exceeded analysts’ expectations

Markets are also watching a potential Supreme Court decision tied to Trump’s tariffs, alongside speeches by global leaders at the World Economic Forum in Davos, Switzerland

Among other movers, RAPT Therapeutics surged sixty-four per cent after Britain’s GSK agreed to acquire the U.S. firm for two point two billion dollars