Dow, S&P 500, Nasdaq futures sink as Trump targets allies with tariff threat over Greenland

US stock futures slid Monday night, signaling a rocky return to trading as President Trump escalated trade tensions with Europe over Greenland, reviving tariff fears just as Wall Street heads into earnings season.

Dow Jones Industrial Average futures (YM=F) fell 0.8%, pointing to a drop of around 400 points at Tuesday’s open. S&P 500 futures (ES=F) fell nearly 1%, while Nasdaq 100 futures (NQ=F) sank about 1.2%.

The moves followed Trump’s weekend announcement that the US will impose sweeping tariffs on imports from eight NATO countries unless they agree to negotiations over the “complete and total purchase of Greenland.” In response, Europe has discussed up to $108 billion in retaliatory tariffs, with a potential fallout of some $8 trillion.

In a Truth Social post on Saturday, Trump said US tariffs against the EU would begin at 10% on Feb. 1 and climb to 25% by June 1. European officials quickly condemned the threat as “unacceptable.” Adding to the intrigue this week, Trump will speak at the World Economic Forum in Davos, Switzerland, on Wednesday.

The tariff standoff is also unfolding against a key legal backdrop. The Supreme Court may rule as soon as this week on whether Trump’s use of the International Emergency Economic Powers Act to impose tariffs is constitutional. Treasury Secretary Scott Bessent said Sunday he believes it is “very unlikely” the court would overturn what he called the president’s signature economic policy.

Adding to global unease, civil unrest in Iran has intensified. A regional Iranian official said Sunday that at least 5,000 people have been killed in nationwide protests that began in late December over economic conditions and have since expanded into broader anti-government demonstrations.

US equities are coming off a losing week. The S&P 500 (^GSPC) fell 0.4%, the Dow (^DJI) dropped 0.3%, and the Nasdaq Composite (^IXIC) slid 0.7%.

Investors are also looking ahead to a busy earnings slate, with results due from Netflix (NFLX), Intel (INTC), and Johnson & Johnson (JNJ), among others. Corporate guidance will be closely watched, particularly as analysts expect the S&P 500 to deliver earnings growth of roughly 12% to 15% this year, with room for an equal downside if “Sell America” sentiment continues to linger.