Dow Futures Plunge Over 300 Points Amid Trump's New Greenland Tariff Threat

U.S. stock futures pointed to a grim start for Wall Street on Monday night as President Donald Trump intensified his rhetoric over Greenland, threatening to impose new tariffs on countries that oppose the sale of the Danish territory to the United States.

Futures tied to the Dow Jones Industrial Average indicated a decline of 378 points at Tuesday's open. S&P 500 futures were set for a 0.9% drop, while Nasdaq 100 futures were poised to lose around 1.1%.

Trump announced in a Truth Social post on Saturday that U.S. imports from eight NATO members would face escalating tariffs "until such time as a Deal is reached for the Complete and Total purchase of Greenland." The tariffs are scheduled to begin at 10% on February 1 and rise to 25% on June 1, according to Trump. European leaders have already branded these penalties as "unacceptable." Shares of European carmakers and luxury goods companies saw drops on Monday, while some defense stocks across the continent rallied.

Monday night marked the first opportunity for U.S. investors to fully react to this trade escalation, as markets had been closed for the Martin Luther King holiday.

Jeff Kilburg, CEO of KKM Financial, suggested that investors should "buy the dip" if equities fall due to tariff fears. "Markets initial reaction to potential tariffs [is] presenting a buying opportunity as focus will shift away from Davos and back to Q4 earnings season mid week," he stated.

The administration's levies are also under close scrutiny as Wall Street awaits a major court decision. The Supreme Court could rule as early as next week on whether to strike down the Trump tariffs, which the president has imposed under the International Emergency Economic Powers Act. Treasury Secretary Scott Bessent commented on Sunday that he believes it's "very unlikely that the Supreme Court will overrule a president's signature economic policy."

"In general, we do expect that much policy uncertainty, particularly as related to tariffs, should be behind us. Still, we need to expect that policy related volatility, such as catching headlines over the weekend, will persist," Scott Chronert, head of U.S. equity strategy at Citi, wrote to clients.

Civil unrest in Iran also kept global investors on edge, with reports of at least 5,000 casualties in nationwide protests that began on December 28 over economic hardship and have since expanded into calls for an end to clerical rule.

Major U.S. averages are coming off a losing week. The S&P 500 shed 0.4%, while the 30-stock Dow Jones Industrial Average dropped 0.3% last week. The Nasdaq Composite recorded a loss of 0.7%, despite a brief lift in chipmaking stocks tied to the artificial intelligence trade on Thursday following Taiwan Semiconductor's strong fourth-quarter report.

This week, quarterly financial results are anticipated from companies including Netflix, Charles Schwab, Johnson & Johnson, and Intel. Guidance from companies this year is crucial for sustaining bullish sentiment for U.S. stocks, as the S&P 500 is already projected to post earnings growth of 12% to 15%.

European markets were significantly rattled by renewed uncertainty stemming from President Donald Trump's push for U.S. control of Greenland and his latest tariff threats. The broad Stoxx Europe 600 index fell 1.3%, with shares of automakers and luxury goods companies experiencing notable declines. Germany's DAX, comprising the 40 major German companies trading on the Frankfurt Stock Exchange, slipped 1.2%. France's main stock market index, the FR40, slid 1.8%.

Trump announced over the weekend that eight European allies would face increasing tariffs, starting at 10% on February 1 and rising to 25% on June 1, if a deal allowing the U.S. to buy Greenland is not reached. European countries are reportedly considering retaliatory tariffs and broader economic countermeasures against the U.S. in response to Trump's threat.

Shortly after 6 p.m. ET on Monday, futures tied to the Dow Jones Industrial Average indicated a loss of about 367 points. Futures tied to the S&P 500 and Nasdaq-100 reflected declines of approximately 0.8% and 1%, respectively.