Stocks were poised to sink at the open Tuesday after President Donald Trump threatened to impose new tariffs on eight NATO allies for opposing his desired sale of Greenland to the U.S.
Nasdaq 100, S&P 500, and Dow Jones Industrial Average futures dropped 1.9%, 1.6%, and 1.3%, respectively, after Trump wrote on his Truth Social network over the weekend that the allies would face 10% U.S. import tariffs on Feb. 1 and 25% tariffs beginning June 1 “until such time as a Deal is reached for the Complete and Total purchase of Greenland.”
Big tech stocks led premarket declines Tuesday, with shares of Magnificent Seven firms Nvidia (NVDA), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), and Tesla (TSLA) all down between roughly 2.5% and 3%.
Trump said he will meet with “various parties” about Greenland at the World Economic Forum in Davos, Switzerland, where he is expected to speak on housing affordability on Wednesday. Meanwhile, traders will be keeping an eye on the U.S. Supreme Court, which may issue a ruling on the legality of Trump’s “Liberation Day” tariffs.
The yield on the 10-year Treasury, which impacts interest rates on a variety of consumer loans including mortgages, jumped seven basis points to roughly 4.30%, and safe-haven gold and silver futures rose to fresh all-time highs of more than $4,740 an ounce and $95.40 an ounce, respectively.
Bitcoin was trading around $91,300, down from overnight highs around $93,300. The U.S. dollar index, which tracks the value of the greenback against a basket of global currencies, fell about 1% to 98.46. West Texas Intermediate crude futures, the U.S. benchmark, advanced 0.4% to $59.70 a barrel.
Netflix (NFLX) shares ticked higher ahead of quarterly results after the close Tuesday. Those of 3M (MMM) declined 2% after it reported its own results before the bell.