U.S. stocks tumbled Tuesday, posting their steepest decline since October, after President Trump renewed calls for the United States to take control of Greenland, reviving concerns over a potential global trade conflict.
The Dow Jones Industrial Average slid 871 points, or 1.8%, while the dollar weakened and Treasury yields climbed, with the 10-year yield hitting its highest level since August. Investors moved toward traditional safe havens, driving gold prices to a fresh record as the Swiss franc strengthened.
Selling pressure intensified after Trump doubled down on his Greenland ambitions in social-media posts while traveling to the World Economic Forum in Switzerland. He is expected to clash with global leaders over territorial claims and warned that U.S.–European trade ties could be jeopardized if negotiations fail.
When asked how far he would go to secure Greenland, Trump told reporters at the White House, “You’ll find out,” expressing confidence that an agreement could be reached to acquire the semiautonomous Danish territory.
All three major U.S. stock indexes suffered their sharpest losses since Oct. 10. The Nasdaq Composite dropped 2.4%, while the S&P 500 fell 2.1%. Major technology stocks—including Nvidia, Alphabet and Amazon—sold off, with each of the so-called Magnificent Seven declining at least 1.1%.
Elsewhere, Japan’s long-term government bond yields surged to record highs amid concerns that an upcoming election could pave the way for tax cuts that strain public finances. Global bond yields broadly moved higher.
The dollar weakened against the euro, British pound and Swiss franc. Silver futures jumped to a record above $94 per troy ounce, while gold climbed past $4,750, marking another all-time high.
Frequently Asked Questions
Why did U.S. stocks fall so sharply today?
Markets sold off after President Trump renewed calls for the U.S. to take control of Greenland, reigniting fears of a global trade war and increased geopolitical uncertainty.
Why did Treasury yields rise while stocks fell?
Rising yields reflected concerns over inflation, higher government borrowing and global bond selloffs, particularly after record jumps in Japan’s long-term yields.
Why did gold and silver hit record highs?
Investors rushed into safe-haven assets as geopolitical risk increased, weakening the dollar and boosting demand for precious metals.
Why did technology stocks lead the decline?
High-valuation growth stocks such as Nvidia, Alphabet and Amazon are more sensitive to rising yields and risk-off sentiment, amplifying their losses.
What should investors watch next?
Key factors include developments from the World Economic Forum, U.S.–EU trade signals, bond market moves and upcoming economic data that could shape rate expectations.
