US Stock Markets Plunge, Investors Avoid Risk
US stocks fell sharply on Tuesday (January 20th) after President Donald Trump threatened new tariffs, amidst heightened tensions in the global bond market. The S&P 500 and Dow Jones Industrial Average both fell around 1.3%, while the Nasdaq 100 fell 1.6%.
Trump announced plans for 10% tariffs starting in February on goods from Denmark, Norway, Germany, the UK, France, the Netherlands, Sweden, and Finland if those countries continue to reject the sale of Greenland to the US. The tariffs could rise to 25% in June, fueling fears of a renewed trade war and prompting investors to reduce risk.
Pressure also came from the bond market. The promise of tax cuts in Japan triggered a surge in long-dated bond yields, which spread to other major economies. Rising interest rates are typically bad news for growth stocks, so tech giants were hit hard: Nvidia, Microsoft, and Alphabet all fell more than 2%.
On the corporate side, 3M plunged 5% despite exceeding fourth-quarter revenue estimates—a sign that the market remains sensitive to the outlook. Meanwhile, Netflix futures rose 1.5% ahead of the report's release after market close, amid reports Netflix is open to changing its Paramount acquisition offer to an all-cash basis to increase the chances of a deal.
Source: Newsmaker.id
