Nasdaq and Dow set to tumble as Wall Street reacts to Trump's Greenland tariffs

• Trump announced Saturday he would impose 10% tariffs on eight European nations, rising to 25% later in the year, if Greenland negotiations fail; he is scheduled to attend the World Economic Forum in Davos on Wednesday
• European leaders are reportedly discussing countermeasures, including potential first use of the EU's Anti-Coercion Instrument to push back against Washington's stance
• Market volatility may increase as attention builds around a potential Supreme Court ruling on the legality of the White House's tariffs; the US dollar index fell 0.9% while Treasury yields rose amid global bond selling

Market Summary: Trump Tariffs Trigger Wall Street Selloff

Key Market Movements:

U.S. futures signal sharp declines as markets prepare to open after the Martin Luther King Day holiday. Nasdaq futures fell 1.6%, S&P 500 futures dropped 1.4%, and Dow Jones futures declined 1.3%. The U.S. dollar index retreated 0.9% from Friday's six-week high, while Treasury yields rose amid global government bond selling.

Tariff Announcement Details:

President Trump announced 10% tariffs on eight European nations on Saturday, escalating to 25% later in 2026 if negotiations over Greenland fail. The move sparked a global equity selloff while U.S. markets were closed Monday. European leaders are reportedly considering countermeasures, including potential use of the EU's Anti-Coercion Instrument.

Upcoming Events:

Trump is scheduled to attend the World Economic Forum in Davos on Wednesday for speeches and bilateral discussions. Market attention is also focused on a potential Supreme Court ruling regarding the legality of the White House's tariff authority, which could increase market volatility.

Corporate News:

Netflix, 3M, and United Airlines are releasing earnings today. Separately, Netflix announced it is converting its $82.7 billion Warner Bros Discovery acquisition to an all-cash deal at $27.75 per share, providing "enhanced certainty" to stakeholders.

Market Implications:

Analyst David Morrison from Trade Nation noted this is "the first opportunity for investors to assess their exposure to individual U.S. equities" since the tariff announcement. While some analysts view tariff-driven selloffs as potential buying opportunities during earnings season, the breadth of Trump's rhetoric has significantly unsettled risk appetite across global markets.