Stock markets around the world witnessed a sharp decline on Tuesday, with Wall Street suffering its worst day since October. The sell-off followed US President Donald Trump's push for control over Greenland and threats of new tariffs on eight European countries.
The Dow Jones Industrial Average plummeted by 1.8%, while the S&P 500 fell by 2.1%. The tech-heavy Nasdaq index dropped 2.4% as Amazon, Tesla, and Nvidia saw significant losses, wiping billions off their market values. The UK's FTSE 100 index also fell 0.7% on Tuesday, with smaller declines reported in Europe.
Trump's trade policies have renewed economic uncertainty, particularly among European countries. Germany, France, Denmark, the UK, Sweden, Norway, and Finland will face tariffs if they fail to agree on a deal for the sale of Greenland. The US has threatened to impose 10% tariffs starting February 1, which can rise to 25% by June.
However, US Commerce Secretary Howard Lutnick downplayed the likelihood of a fresh trade war, suggesting that diplomacy would be the outcome of the Greenland dispute. He argued that Trump's tariff policies are necessary due to globalization's failure to deliver for Western economies and American workers.
UK Chancellor Rachel Reeves urged caution, reminding European allies that their own economic security depends on cooperation. "We do also need to preserve some of the things that the US has benefited from," she said.
Despite Lutnick's reassurances, investor nerves remain high. Gold prices reached a record high as investors sought shelter from market volatility. The situation remains uncertain, with Trump set to deliver a speech at Davos on Wednesday and US Treasury Secretary Scott Bessent urging European countries not to retaliate against US trade tariffs.
The Dow Jones Industrial Average plummeted by 1.8%, while the S&P 500 fell by 2.1%. The tech-heavy Nasdaq index dropped 2.4% as Amazon, Tesla, and Nvidia saw significant losses, wiping billions off their market values. The UK's FTSE 100 index also fell 0.7% on Tuesday, with smaller declines reported in Europe.
Trump's trade policies have renewed economic uncertainty, particularly among European countries. Germany, France, Denmark, the UK, Sweden, Norway, and Finland will face tariffs if they fail to agree on a deal for the sale of Greenland. The US has threatened to impose 10% tariffs starting February 1, which can rise to 25% by June.
However, US Commerce Secretary Howard Lutnick downplayed the likelihood of a fresh trade war, suggesting that diplomacy would be the outcome of the Greenland dispute. He argued that Trump's tariff policies are necessary due to globalization's failure to deliver for Western economies and American workers.
UK Chancellor Rachel Reeves urged caution, reminding European allies that their own economic security depends on cooperation. "We do also need to preserve some of the things that the US has benefited from," she said.
Despite Lutnick's reassurances, investor nerves remain high. Gold prices reached a record high as investors sought shelter from market volatility. The situation remains uncertain, with Trump set to deliver a speech at Davos on Wednesday and US Treasury Secretary Scott Bessent urging European countries not to retaliate against US trade tariffs.
I'm kinda torn about this whole Greenland thing... On one hand, I think Trump's getting his usual attention-grabbing moment going on 
, but at the same time, it's just another example of how global politics can wreak havoc on markets 
. The fact that it's already affecting UK and European economies is not good news 
. And let's be real, tariffs never end well... I'm curious to see how this all plays out, especially after Trump's speech at Davos on Wednesday 
. One thing for sure though - investor nerves are running high 
.
it's just another way to stir up drama and distract from actual issues 
anyway, it's gonna be a wild ride with gold prices soaring 
maybe investors are finally starting to wake up to the fact that we need some stability in our markets 
will we see a global recession or just a wild ride 
? 
I'm not sure if diplomacy will save the day 
or if trade wars are on the horizon 
. One thing's for sure, investors are getting the jitters 
. Meanwhile, gold prices are making a comeback 
. Fingers crossed 
.
Can't believe the stock markets are getting hit like this. Just when you thought things were looking up, Trump goes and throws a wrench in the works with his Greenland trade tantrum. 
. And don't even get me started on the UK's FTSE 100 index dropping 0.7%... just another day in the never-ending saga of Trump's trade wars 