U.S. stock futures fell sharply early Tuesday, signaling a turbulent start to the trading week as President Trump reignited trade tensions with Europe over Greenland, reviving tariff concerns just as Wall Street enters a critical earnings period.
Dow Jones Industrial Average futures dropped 0.9%, indicating a potential decline of about 400 points at the open. S&P 500 futures slid 1%, while Nasdaq 100 futures sank more than 1.2%.
The selloff followed Trump’s weekend declaration that the U.S. would impose broad tariffs on imports from eight NATO countries unless negotiations begin over what he described as the “complete and total purchase of Greenland.” European officials have since discussed retaliatory measures totaling up to $108 billion, with estimates suggesting the broader economic impact could reach $8 trillion.
In a Truth Social post on Saturday, Trump said tariffs on European Union goods would start at 10% on February 1 and rise to 25% by June 1. European leaders swiftly labeled the proposal “unacceptable.” Attention will also turn to Trump’s scheduled appearance at the World Economic Forum in Davos on Wednesday.
The tariff dispute comes amid legal uncertainty, as the Supreme Court could rule as soon as this week on whether Trump’s use of the International Emergency Economic Powers Act to enact tariffs is constitutional. Treasury Secretary Scott Bessent said Sunday he believes it is “very unlikely” the court would overturn what he described as a cornerstone of the president’s economic agenda.
Global risk sentiment was further pressured by escalating unrest in Iran. A regional official said Sunday that at least 5,000 people have been killed in nationwide protests that erupted in late December over economic conditions and have since broadened into anti-government demonstrations.
U.S. stocks are coming off a losing week, with the S&P 500 down 0.4%, the Dow falling 0.3%, and the Nasdaq Composite sliding 0.7%.
Investors are also bracing for a heavy earnings schedule, with results expected from Netflix, Intel, and Johnson & Johnson. Corporate outlooks will be closely scrutinized, as analysts forecast S&P 500 earnings growth of roughly 12% to 15% this year—while warning that persistent “Sell America” sentiment could materially drag on results.
Frequently Asked Questions
Why are U.S. stock futures falling today?
Futures are under pressure due to renewed tariff fears after President Trump escalated trade tensions with Europe, combined with rising geopolitical risks and an upcoming heavy earnings week.
How do tariff threats impact stocks, especially the Nasdaq?
Tariffs raise costs, hurt global trade, and squeeze corporate margins—factors that weigh heavily on multinational and tech stocks with large overseas exposure.
Why is the Greenland issue important for markets?
The dispute risks triggering retaliatory tariffs from Europe, potentially impacting up to trillions in global trade flows and increasing uncertainty for investors.
What role does the Supreme Court decision play in market sentiment?
A ruling on the legality of tariff powers could determine whether these trade actions are sustainable, adding legal risk to an already volatile macro backdrop.
What should investors watch next?
Key earnings from companies like Netflix, Intel, and Johnson & Johnson, guidance on future demand, and developments from the World Economic Forum in Davos.
