Traders work on the floor at the New York Stock Exchange, Jan. 20, 2026.
Michael Nagle | Bloomberg | Getty Images
Stock futures traded near the flatline Tuesday night after major averages saw their worst day in three months.
Futures tied to the Dow Jones Industrial Average advanced 25 points, or less than 0.1%. S&P 500 futures added less than 0.1%, while Nasdaq 100 futures were marginally lower.
U.S. equities posted sharp losses in the regular session as President Donald Trump escalated his Greenland tariff threats ahead of his scheduled appearance in Davos on Wednesday. The 30-stock Dow slipped more than 870 points, or about 1.8%, while the S&P 500 lost roughly 2.1%. A drawdown in technology stocks led the selloff, with the Nasdaq Composite sliding 2.4% on the day. All three benchmark indices logged their worst daily performances since Oct. 10. The selloff also dragged the S&P 500 and the Nasdaq into negative territory for 2026.
The so-called sell America trade on Tuesday was accompanied by a spike in U.S. Treasury yields and a decline in the U.S. dollar. The 10-year Treasury yield surged and briefly topped 4.3% at the high of the day.
Trump on Tuesday doubled down on his efforts to take possession of Greenland. He threatened to impose 200% tariffs on French wines and Champagne after French President Emmanuel Macron reportedly snubbed a seat on Trump’s “Board of Peace” on Gaza. Over the weekend, Trump had announced that eight NATO members’ U.S. imports will face escalating levies “until such time as a Deal is reached for the Complete and Total purchase of Greenland.” The tariffs will start at 10% on Feb. 1 and rise to 25% on June 1, his Truth Social post said.
Danish pension operator AkademikerPension said Tuesday that it is exiting its roughly $100 million position in U.S. Treasurys because of finance concerns over U.S. debt. The move came as tensions between the U.S. and Denmark escalate on the back of Trump’s moves. European leaders, who have loudly condemned Trump’s threats, are reportedly considering using counter-tariffs and other punitive economic measures against the U.S.
“It’s not a major pullback yet, and so we do think there’s a possibility and a very realistic possibility for things to go perhaps a more negative turn before they get better, and that’s something that investors could want to position for,” Yung-Yu Ma, chief investment strategist at PNC Asset Management, said Tuesday on CNBC’s “Closing Bell.”
This week is a busy one for corporate earnings, which U.S. investors are hoping will continue to prop up the stock market this year. Netflix shares declined more than 4% in after-hours trading Tuesday after the streaming giant posted a narrow fourth-quarter earnings beat. Johnson & Johnson, Halliburton and Travelers are slated to report Wednesday.