NEW YORK, New York - U.S. and global stocks, foreign exchange and bond markets continued to be rattled Tuesday, as U.S. investors and traders returned to work after the 3-day weekend to mark Martin Luther King Day.

Driving stocks, the U.S. dollar and U.S. Treasuries down have been threats by President Donald Trump to take possession of Greenland, by military force if necessary, and his imposition of tariffs on countries that oppose the move.

"While tariffs is not new and Greenland, frankly, or the administration's interest in Greenland, isn't new, the weaponization of tariffs in the short term to achieve kind of a non-economic or maybe economic adjacent goal is new," Brad Long, chief investment officer at Wealthspire, told CNBC Tuesday

."Europe walked out of 2025 largely unscathed, or at least unscathed on a relative basis for tariffs. Now, this is a direct line to some of the U.S.′ closest allies — eight nations across Europe, 10 percent to 25 percent tariffs. We're kind of picking back up the 2025 April volatility of Trump uncertainty and shifts in policy," Long said.

"Sell America" was the theme Tuesday as investors worldwide accelerated moves to bail out of U.S. stocks, bonds and the dollar.

The benchmark Standard and Poor's 500 plummeted 2.06 percent, a drop of 143.15 points, to close at 6,796.86.

The blue-chip Dow Jones Industrial Average fell 1.76 percent, shedding 870.74 points to end the day at 48,488.59.

The NASDAQ Composite experienced the most severe decline, tumbling 2.39 percent, or 561.06 points, to finish at 22,954.32.

Key Market Movements:

• S&P 500: Closed at 6,796.86, down 143.15 points (-2.06 percent).

• Dow Jones Industrial Average: Closed at 48,488.59, down 870.74 points (-1.76 percent).

• NASDAQ Composite: Closed at 22,954.32, down 561.06 points (-2.39 percent).

The pronounced weakness in the Nasdaq suggests a rout in technology and growth stocks was a primary driver of the day's decline. The scale of the sell-off across all three major U.S. indices indicates a potent shift toward risk aversion among investors, potentially fueled by concerns over the president's erratic rhetoric and threats relating to his designs on Greenland..

Forex Markets See U.S. Dollar Slide Amid Geopolitical Tensions

The U.S. dollar faced broad selling pressure in Tuesday's foreign exchange session, with investors appearing to move away from the greenback following a series of provocative statements from former President Donald Trump. The move comes after Trump renewed threats to seize Greenland and announced the imposition of tariffs on countries that oppose the move, injecting fresh uncertainty into global markets.

The euro was a primary beneficiary, with EUR/USD rallying 0.64 percent to 1.1720. The common currency's jump reflects a classic risk-off shift away from dollar-denominated assets amid the escalating geopolitical rhetoric.

The dollar's weakness was not uniform but was particularly pronounced against traditional safe-haven and commodity-linked currencies. The Swiss franc surged, with USD/CHF plummeting 0.88 percent to 0.7901. The commodity-sensitive Australian and New Zealand dollars also gained ground; AUD/USD rose 0.33 percent to 0.6735, while NZD/USD advanced 0.61 percent to 0.5832.

The British pound posted a modest gain, with GBP/USD edging up 0.08 percent to 1.3434.

The dollar managed mixed results against other major counterparts. It held steady against the Japanese yen, with USD/JPY inching up a mere 0.05 percent to 158.21. However, it lost ground against its northern neighbor, as USD/CAD fell 0.24 percent to 1.3831, supported by firmer oil prices.

Market analysts cite the political developments as a key driver. "Trump's comments on Greenland and the associated tariff threats have reintroduced a layer of political risk that markets had not priced in," said currency strategist Anya Petrova. "This has triggered a classic flight from the dollar, especially into currencies like the franc and euro, which are seen as stable alternatives when U.S. foreign policy becomes volatile."

The market's reaction underscores the sensitivity of global capital flows to U.S. political statements. Traders will be watching for further developments and any official response from allied nations, which could determine whether the dollar's Tuesday slump marks the start of a longer-term trend or a brief geopolitical shudder.

Global Markets Retreat on Tuesday; Asia-Pacific and European Indices See Broad Declines

Major global stock indices closed lower on Tuesday, with European and Asia-Pacific markets leading the decline amid renewed economic concerns. The session was characterized by widespread selling pressure, though a few notable exceptions managed to post modest gains.

In Canada, the S&P/TSX Composite index also retreated, though its losses were less severe than those on Wall Street. The Canadian benchmark fell 1.03 percent, losing 340.68 points to close at 32,750.28.

In Europe, losses were broad-based. Germany's DAX was among the hardest hit, dropping 255.94 points, or 1.03 percent, to close at 24,703.12. France's CAC 40 retreated 49.44 points (0.61 percent) to 8,062.58. The broader EURO STOXX 50 index declined by 0.57 percent to 5,892.08. Belgium's BEL 20 fell 0.78 percent, and the Euronext 100 Index dipped 0.51 percent.

The UK's FTSE 100 fell 68.57 points, a decline of 0.67 percent, finishing at 10,126.78.

The Asia-Pacific region also faced a mostly negative session. Japan's Nikkei 225 tumbled 1.11 percent, losing 592.47 points to settle at 52,991.10. Australia's S&P/ASX 200 declined 0.66 percent, and the broader All Ordinaries index fell 0.61 percent. South Korea's KOSPI Composite edged down 0.39 percent, while Hong Kong's Hang Seng Index slipped 0.29 percent. India's S&P BSE SENSEX saw a significant drop of 1.28 percent, falling 1,065.71 points. Singapore's STI Index posted a minor loss of 0.14 percent, and New Zealand's S&P/NZX 50 dipped a marginal 0.05 percent.

However, several markets bucked the downward trend. Indonesia's IDX Composite eked out a gain of 0.01 percent. Taiwan's TWSE index rose 0.38 percent, and South Africa's Top 40 USD Net TRI Index advanced 0.29 percent. Egypt's EGX 30 was a standout performer, surging 1.90 percent. Mainland China's SSE Composite Index was essentially flat, closing down a negligible 0.01 percent.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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Monday 19 January 2026 | UK and EU stocks tumble after hostilities with U.S. heighten over Greenland  | Big News Network.com