Stocks Post Biggest Drop in Months as Tensions Over Greenland Mount The S&P 500 dropped over 2 percent on Tuesday, its
Stocks Post Biggest Drop in Months as Tensions Over Greenland Mount
The S&P 500 dropped over 2 percent on Tuesday, its biggest decline since October.
By The New York Times
By Joe Rennison
Jan. 20, 2026
https://www.nytimes.com/2026/01/20/business/stocks-trump-greenland-tariffs.html
President Trumps intensifying standoff with European leaders over the fate of Greenland prompted a sharp response from investors Tuesday, with the value of U.S. stocks, the dollar and government bonds all falling.
The S&P 500 dropped over 2 percent for the first time since October, as investors reacted to Mr. Trumps increasing threat of higher tariffs on European allies unless they supported his plans for America to take control of Greenland. The Vix volatility index, known as Wall Streets fear gauge, rose to its highest level since November.
Tuesdays opening decline was the indexs biggest since April, when Mr. Trump first proposed sweeping tariffs on nearly all of Americas trading partners. And while the sell-off remained contained for now, with the S&P 500 still close to its record high, the moves showed a clear increase in investor concern over the future of the established world order. Investors had become inured to geopolitical upheaval in recent years because it has typically had little impact on corporate profits.
Investors confidence wavered on Tuesday even as Mr. Trump boasted about a long list of embellished achievements in remarks to reporters, among them the strength of investments in the United States and the stock markets returns over the course of his first year in office.