Stocks Tumble, Treasury Yields Jump To 5-Month Highs: What’s Moving Markets Tuesday?
Wall Street tumbled on Tuesday, reopening after the Martin Luther King Jr. Day holiday, as risk-off sentiment intensified following President Donald Trump‘s aggressive new trade stance toward Europe.
The S&P 500 fell 1.5% to 6,840, eyeing its worst session since late November, led lower by consumer discretionary and technology stocks. The Nasdaq 100 dropped 1.4%, the Dow Jones Industrial Average lost 1.3%, while the Russell 2000 eased 0.8%.
Trump threatened several European countries with an additional 10% tariffs starting Feb. 1 if negotiations over Greenland control fail, with duties potentially rising to 25% from June.
European officials warned of retaliation that could affect up to 25% of U.S. exports to Europe, potentially including services, and floated the possibility of reducing Treasury holdings. Trump also warned French President Emmanuel Macron that tariffs as high as 200% could be imposed on French wines and champagne.
Markets are now focused on Trump’s appearance on Wednesday at the World Economic Forum in Davos.
Risk-off sentiment spilled into fixed income. Long-dated Treasury yields climbed to their highest levels since late September, with the …
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