Traders work on the floor of the New York Stock Exchange on January 20, 2026.
Michael Nagle | Bloomberg | Getty Images
Stock futures rose Wednesday morning, signaling a tentative recovery from Wall Street’s worst day in three months.
futures tied to Dow Jones Industrial Average This was an increase of 116 points (0.2%). S&P500 futures Approximately 0.4% added, Nasdaq 100 futures It was 0.4% higher.
U.S. stocks fell sharply in trading on Tuesday as President Donald Trump escalated his threat of Greenland tariffs ahead of his scheduled appearance at the World Economic Forum in Davos, Switzerland, on Wednesday. The 30-stock Dow Jones Industrial Average fell more than 870 points, or about 1.8%, and the S&P 500 index fell about 2.1%. The sell-off was led by declines in tech stocks, and the Nasdaq Composite Stock Price Index fell 2.4% on the day. All three benchmark indexes posted their worst daily performance since October 10th. This decline also pushed the S&P 500 and Nasdaq into negative territory in 2026.
Tuesday’s so-called “Sell America” trade was accompanied by a spike in U.S. Treasury yields and a decline in the U.S. dollar. of 10 year government bond yield The price soared, and at one point reached a high of more than 4.3% on the day.
On Tuesday, President Trump declined to say how far he would go to make Greenland part of the United States, telling reporters, “We’ll see.”
President Trump has not ruled out military action to seize the island, recently threatening to impose tariffs of up to 25% if eight NATO members block his bid.
Speaking at Davos on Tuesday, European Commission President Ursula von der Leyen said President Trump’s new tariff proposals were a “mistake” that would send Europe and the United States into a “dangerous downward spiral.”
“Our response will be unflinching, united and proportionate,” he said, adding that the EU stood in “full solidarity” with Greenland and Denmark.
European Parliament International Trade Committee Chairman Bernd Lange will hold a press conference in Strasbourg, France, later on Wednesday. The BBC reported, citing unnamed sources, that he would announce the suspension of the US-Europe trade deal reached this summer.
Also speaking at the WEF on Tuesday, French President Emmanuel Macron said a potential response to new U.S. tariffs would be to use the EU’s anti-coercion tools to restrict U.S. companies’ access to the European single market. If triggered, the ACI could exclude U.S. suppliers from participating in EU public tenders, impose import and export restrictions on goods and services, and impose restrictions on foreign direct investment.
Danish pension operator Akademi Carpension said on Tuesday it would exit about $100 million in U.S. debt positions due to financial concerns surrounding the bonds. The move comes amid rising tensions between the United States and Denmark over Greenland.
“It’s not a big pullback yet, so we think there’s a very real possibility that things could turn more negative before they get better. Investors will want to assume that,” Yunyu Ma, chief investment strategist at PNC Asset Management, said on CNBC’s “Closing Bell” on Tuesday.
On Wednesday morning, Treasury Secretary Scott Bessent told reporters in Davos that the Trump administration was “not concerned” about the previous day’s decline in stocks.
This week is the week of corporate earnings releases, which U.S. investors hope will continue to support the stock market this year. Netflix Shares fell in after-hours trading Tuesday after the streaming giant reported slightly better fourth-quarter profits.
johnson & johnson, halliburton and traveler A report is expected on Wednesday.
