After moving sharply lower at the start of trading, stocks have seen continued weakness over the course of the trading session on Tuesday. The major averages have all moved to the downside, adding to the losses posted last week.
Currently, the major averages are off their worst levels but still firmly negative. The Dow is down 529.57 points or 1.1 percent at 48,829.76, the Nasdaq is down 309.40 points or 1.3 percent at 23,205.99 and the S&P 500 is down 77.34 points or 1.1 percent at 6,862.67.
The sell-off on Wall Street comes amid renewed concerns about a trade war between the U.S. and Europe over President Donald Trump’s efforts to take control of Greenland.
Trump has threatened to impose new tariffs on several European nations if they oppose his attempt to purchase the Danish territory, which he claims is imperative for national security.
In a post on Truth Social, Trump announced plans to impose a 10 percent tariff on imports from Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands and Finland beginning February 1st.
Trump said the tariffs would be increased to 25 percent beginning June 1st and would remain in place until a deal is reached for the U.S. to purchase Greenland.
“Investors will be hoping for some sort of de-escalation deal on Greenland which removes the risk of a break-up or at least serious rupture in the Nato alliance,” said AJ Bell investment director Russ Mould. “If the crisis deepens it is unlikely to spell good news for global equities.
He added, “Nasdaq looks set to chalk up the biggest declines amid concern about possible retaliatory action from Europe against America’s big tech contingent.”
Airline stocks have shown a significant move to the downside on the day, dragging the NYSE Arca Airline Index down by 1.5 percent.
Considerable weakness is also visible among commercial real estate stocks, as reflected by the 1.4 percent loss being posted by the Dow Jones U.S. Real Estate Index.
Housing, retail and software stocks are also seeing notable weakness, while gold stocks have moved sharply higher along with the price of the precious metal.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan’s Nikkei 225 Index slumped by 1.1 percent, while Hong Kong’s Hang Seng Index dipped by 0.3 percent.
The major European markets have also moved to the downside on the day. While the German DAX Index is down by 1.1 percent, the U.K.’s FTSE 100 Index is down by 0.8 percent and the French CAC 40 Index is down by 0.7 percent.
In the bond market, treasuries are extending the steep drop seen during last Friday’s session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.2 basis points at 4.273 percent.
Business News
U.S. Stocks Move Sharply Lower Amid Renewed Trade War Concerns
2026-01-20 16:20:00
