US Futures Slide as Greenland Crisis Rattles Markets

US equity futures moved sharply lower late on Monday, reflecting caution over trade policy and global risk sentiment. By 9:11pm ET, Nasdaq 100 futures were down about 1%, S&P 500 futures had fallen 0.9%, and Dow Jones futures were also lower by roughly 0.9%.

US Futures Slide

Wall Street started the week on the back foot as investors returned from the Martin Luther King Jr. Day holiday to a mix of geopolitical unease, renewed tariff threats and a busy earnings calendar.

Retail traders showed a similar mood. On Stocktwits, sentiment toward the SPDR S&P 500 ETF Trust and the Invesco QQQ Trust turned bearish amid heavy message volumes, while sentiment around the SPDR Dow Jones Industrial Average ETF Trust was described as extremely bearish.

Greenland tariffs unsettle markets

The renewed bout of risk aversion followed comments from Donald Trump, who warned that countries opposing the sale of Greenland to the United States would face fresh tariffs.

In a Truth Social post on Saturday, Trump said imports from eight Nato members would be hit with tariffs starting at 10% on 1 February, rising to 25% by 1 June, unless a deal was reached for what he called the “complete and total purchase of Greenland”.

Monday night marked the first chance for US investors to react fully, with markets closed earlier in the day for the holiday. In the previous session, the Dow Jones Industrial Average slipped 0.17%, while the S&P 500 and Nasdaq Composite both edged down by about 0.06%.

Dan Niles, founder of Niles Investment Management, said the Greenland dispute risked complicating hopes for a strong start to the year. Those expectations had been underpinned by easier financial conditions and anticipated tax benefits in early 2026, though he noted policymakers remained sensitive to the sharp selloff triggered by last year’s tariff escalation.

Adding to the backdrop, Intercontinental Exchange said it has developed a platform for trading and on chain settlement of tokenised securities, part of a broader push toward 24 hour trading, subject to regulatory approval.

Davos and policy risks in focus

Attention is also turning to the World Economic Forum in Davos, where Trump is expected to arrive on Wednesday to deliver a special address. He is due to meet global chief executives on the sidelines, with leaders from financial services, crypto and consulting reportedly invited to a reception after his speech.

Investors are also watching for a potential US Supreme Court ruling, expected as soon as next week, on whether to strike down tariffs imposed under the International Emergency Economic Powers Act. Treasury Secretary Scott Bessent said on Sunday he believed it was very unlikely the court would overturn the president’s core trade policy.

Stocks on traders’ radar

Several individual stocks drew attention on fresh corporate updates:

• Micron Technology said it had signed a letter of intent to acquire Powerchip Semiconductor’s P5 fabrication site in Taiwan for $1.8bn.
• Nvidia remained in focus after reports that Chinese customs had blocked its H200 AI chips, with guidance issued discouraging purchases.
• Venus Concept moved into the spotlight after Madryn Asset Management disclosed it had raised its stake to 91% and discussed cost cuts and a possible delisting.
• ImmunityBio said enrolment in its QUILT 2.005 bladder cancer trial had exceeded 85%, alongside updated clinical data and recent regulatory approvals in Saudi Arabia.
• Critical Metals announced a non binding term sheet for a 50 50 rare earth processing joint venture in Saudi Arabia.

Read More: 2026 Row: Keir Starmer Rejects Trump’s Greenland Tariff Threats

Bonds, currencies and commodities

In broader markets, US Treasury yields edged higher as trading resumed, with the 10 year yield rising about three basis points to near 4.26%.

The dollar weakened as investors trimmed exposure to US assets, with the dollar index slipping 0.1% to 99.004, its lowest level since mid January.

Safe haven demand pushed precious metals to record highs. Spot gold climbed 1.7% to $4,672.49 an ounce after briefly touching $4,689.39, while February US gold futures gained 1.8% to $4,677.70. Silver also surged, reflecting heightened defensive positioning.

Asian markets moved lower, with equities under pressure amid geopolitical uncertainty and political developments in Japan, where snap elections have been called for 8 February.

Looking ahead, investors are bracing for a wave of quarterly earnings, including results from Netflix, United Airlines Holdings and KeyCorp, which are expected to set the tone for markets in the days ahead.