US stocks posted hefty losses early Tuesday after President Trump reignited trade-war tensions with Europe over Greenland, while a Japan-led global bond sell-off reverberated through markets.

The Dow Jones Industrial Average (^DJI) tumbled roughly 1.5%, or over 700 points. The S&P 500 (^GSPC) sank 1.4%, while the Nasdaq Composite (^IXIC) retreated 1.6% as investors fled risker bets, on the heels of a losing week for Wall Street stocks.

Investors are facing a rocky return to trading as the risk of full-on US-EU trade war rattles nerves just as earnings season gets going.

Over the weekend, Trump said eight NATO countries would face extra import duties of 10% unless the US got a deal on a purchase of the Danish territory. On Monday, he doubled down on his pursuit of Greenland even as the EU discussed $108 billion in retaliatory tariffs. It could also deploy an “anti-coercion instrument” with a potential fallout of some $8 trillion for US assets.

Trump then threatened on Monday to put a 200% import tariff on France's wines after its leader Emmanuel Macron turned down the US president's invitation to join his "Board of Peace."

The EU's response to these threats will be "unflinching, united, and proportional," European Commission leader Ursula von der Leyen warned on Tuesday, keeping tensions high.

Treasury yields jumped to their highest levels in four months as a sell-off in Japanese bonds added pressure on US debt. In other assets, the dollar (DX-Y.NYB) fell to a two-week low as the "Sell America" trade returned, and haven seekers drove gold (GC=F) and silver (SI=F) to yet more record highs.

Focus is now turning to the World Economic Forum in Davos, where Trump is reportedly set to hold a meeting with other countries over the Greenland crisis. He is scheduled to give his key address on Wednesday.

Looking ahead, the Supreme Court may rule as soon as this week on whether Trump’s use of emergency powers to impose sweeping tariffs is constitutional.

Investors are also bracing for a busy earnings slate, with results from Netflix (NFLX) due after market close on Tuesday. The streaming giant's stock edged up, bucking the premarket trend after it amended its bid for Warner Bros, Discovery's (WBD) studio to an all-cash offer on Tuesday.

Tech led a tumble in US stocks at the market open as President Trump's further ignition of trade-war tensions with Europe overnight sent investors fleeing riskier bets.

The Nasdaq Composite (^IXIC) retreated 1.8%, while the S&P 500 (^GSPC) sank 1.4%. The Dow Jones Industrial Average (^DJI) fell roughly 1.2% — a drop of more than 600 points — as markets reopened for a holiday-shortened trading week after MLK Day.

3M Company (MMM) stock sank about 4% on Tuesday morning as the Minnesota-based company beat earnings expectations but faced a broader market sell-off on the prospect of new tariffs over Greenland.

On an adjusted basis, stripping out significant one-time costs, the Post-it Note maker reported earnings per share of $1.83, compared to analysts' forecasts of $1.80, according to S&P Global Market Intelligence. The company expected temporary charges from tariffs and stranded costs from removing PFAS materials from its products. In Q4, 3M realized $0.56 per share in net costs from litigation.

Sales grew 2.1% in Q4 to $6.1 billion, topping expectations for $6 billion in sales.

For 2026, the company expects adjusted sales growth of around 4% for full-year adjusted EPS of $8.06. Full-year operating cash flow is expected to be $2.3 billion.

\\"2025 was an important year for 3M as we build a strong foundation that is reshaping our operating model and driving sustainable value creation,\\" 3M CEO William Brown said.

;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\\" class=\\"link yahoo-link\\">Read more live coverage of corporate earnings > 

Big Tech and AI stocks dropped in premarket trade Tuesday as investors rotated out of riskier bets amid President Trump's escalation of trade war tensions with Europe.

Nvidia (NVDA), Microsoft (MSFT), Meta (META), and Oracle (ORCL) fell around 2%.

Alphabet (GOOGL), Broadcom (AVGO), Tesla (TSLA), and Amazon (AMZN) sank almost 3%.

Nvidia-backed AI cloud and data center names Nebius (NBIS) and CoreWeave (CRWV) plunged over 5%.

Apple (AAPL) shares dropped more modestly — just over 1%.

Bloomberg reports:

The scale of the moves suggests that investors’ willingness to shrug off earlier shocks — including the White House’s capture of Venezuela’s leader and its renewed attacks on the Federal Reserve — is beginning to erode.

“Our bet is that in the base case the severity will ultimately still be contained as investors bet on some version of a compromise,” wrote Krishna Guha, head of central bank strategy at Evercore ISI. “But the impacts would be very severe if this goes off the rails, and there will be long-lasting implications, including for the dollar.”

As of last week, the average volatility across US bonds, equities and the dollar over the past month had sunk to the lowest since at least 1990.

But with the news coming at a rapid clip, it’s little wonder that investors have rushed to the sidelines. The Supreme Court is expected to rule on Trump’s tariff program soon. Treasury Secretary Scott Bessent said Trump could also announce his pick to run the Federal Reserve as soon as next week.

Japan’s soaring bond yields are also heightening investor worries. Yields on the nation’s 40-year debt topped 4% and the rate on 10-year Treasuries jumped six basis points to 4.29%.

The widespread view among investors is that the US and Europe will reach a diplomatic solution on Greenland. But the chaotic style of White House negotiations, with Trump adding French champagne to his list of tariff threats, is putting a chill on market confidence.

“The latest step-up in transatlantic tensions and tariff uncertainty dents the near-term investment case for European equities,” wrote Citigroup Inc. strategist Beata Manthey in a note. She cut her view on the region’s stock for the first time in over a year.

Read more here.

This week’s sudden stock market pullback might be catching a lot of investors off guard, per Bloomberg.

It reports:

Fund managers were the most bullish since July 2021 while protection against a stock correction had tumbled to an eight-year low, according to a survey from Bank of America Corp. conducted before the weekend’s escalations over Greenland.

A net 38% of respondents in the January poll expected stronger global growth, surging from the month prior, strategists led by Michael Hartnett wrote in a note.

Cash levels have tumbled to a record low while equity allocation climbed to the highest since December 2024 with 48% of managers overweight. That boosted the survey’s sentiment measure to the highest in over four years.

The findings also pushed BofA’s Bull and Bear indicator to a “hyper-bull” level, which indicates investors need to load up on risk hedges and safe havens. Instead, nearly half of participants said they do not have protection against a sharp fall in equity prices, the highest level since 2018.

Read more here.

Hawaiian Electric (HE) stock fell 5% before the bell on Tuesday after receiving a Sell rating and a $12.50 price target from Jefferies analysts.

D.R. Horton (DHI) stock fell 3% during premarket hours after reporting lower first quarter profit as affordability concerns continued to put off home buyers, hurting the company's sales.

Strategy (MSTR) stock dropped 4% before the bell today. Strategy, which is one of the largest corporate holders of bitcoin, saw its shares fall on Tuesday, as bitcoin (BTC-USD) edged lower.

Treasury prices fell, pushing yields to the highest in more than four months as a fierce sell-off in Japanese bonds spilled over into global debt markets.

Bloomberg reports:

Longer maturities led losses, with US 30-year yields (^TYX) rising 10 basis points to 4.94% and 10-year yields (^TNX) up seven basis points to 4.30%, the highest levels since Sept. 3.

Trading of the securities resumed following a US holiday on Monday, with investors reacting to a tumble in Japanese bonds on Tuesday, as well as rising tensions between Europe and the US over control of Greenland.

Concern around Japan’s fiscal outlook sent yields on the nation’s 40-year debt rocketing above 4% in the Asian session, the most on record. That’s weighing on long-dated debt around the world, with 30-year bonds also underperforming in Europe.

Read more here.

British pharma giant GSK (GSK, GSK.L) has agreed to buy RAP Therapeutics (RAPT) in a $2.2 billion deal that will bolster its food allergy treatments.

Shares of the US-based biotech rocketed over 60% higher before the bell on news of the acquisition. GSK's US-listed stock traded little changed.

Reuters reports:

The move is GSK's first major acquisition under its new CEO Luke ‌Miels as the company navigates US tariffs and seeks new medicines to offset revenue declines from some top-selling drugs going off patent.

... London-listed GSK will pay $58 per RAPT share, with an upfront investment of $1.9 billion. The deal will give ‍GSK global rights to the ozureprubart programme, excluding mainland China, Macau, Taiwan and Hong Kong.

Read more here.

Treasurys fell early on Tuesday as President Trump’s tariff threats over Greenland dimmed the allure of US assets and ignited concerns the duties on European imports would add to inflationary pressures.

Bloomberg reports:

Longer maturities led losses, with the 30-year yield (^TYX) rising six basis points to 4.909% as trading of the securities resumed following a US holiday on Monday. Trump’s plan to impose levies on selected European nations as part of a bid to acquire Greenland has revived questions about the unpredictability of his policies and their desirability for global investors.

The decline in Treasuries deepened after Japanese bonds tumbled due to pushback over Prime Minister Sanae Takaichi’s election pitch to cut taxes on food. Japan’s 30- and 40-year yields both surged more than 25 basis points. Australian and New Zealand debt also dropped along with German bund futures.

“The US administration’s actions have undermined the allure of holding Treasuries somewhat as a haven asset, and that ‘uncertainty factor’ is partly showing in rising yields,” said Prashant Newnaha, a strategist at TD Securities in Singapore. “Markets expect Trump to juice markets ahead of the mid terms, and the tariffs are inflationary.”

Read more here.

Bloomberg reports:

Gold (GC=F) was steady near a record high, while silver (SI=F) retreated from an all-time peak, as President Donald Trump’s push to take over Greenland stoked fears of a potential US–Europe trade war.

Markets are now waiting to see how Europe will respond after both precious metals surged on Monday following Trump’s pledge to impose tariffs on eight European nations opposing his Greenland ambitions. Gold traded near $4,670 an ounce on Tuesday, while silver briefly touched a record $94.7295 an ounce.

The US’ threat toward its NATO allies has rattled markets, buoying demand for havens and reviving the “Sell America” trade. French President Emmanuel Macron intends to request activation of the European Union’s anti-coercion instrument, although German Chancellor Friedrich Merz said he’s trying to get Macron to tone down his response.

Read more here.

Bloomberg reports:

Oil steadied as traders tracked the fallout from the US push to take control of Greenland, and concerns about a global surplus.

Brent (BZ=F) held near $64 a barrel after a modest drop on Monday, while West Texas Intermediate (CL=F) was below $60. President Donald Trump’s push to annex Greenland has rocked markets, bruised the dollar, and raised fears of a damaging US-EU trade war.

“The market is not pricing a full retaliation between the US and the EU, and it’s likely that a compromise will be found,” said Mukesh Sahdev, chief executive officer at consultancy XAnalysts Pty Ltd. Still, in the event of an escalating spat, the US may prevail given its economic and energy-supply advantage, he said.

Read more here.