US stock futures remained stable despite the broader market downturn, with a resurgence of the "Sell America" sentiment.
The "Sell America" trend has returned, but US stock futures remain stable despite the broader market downturn. The Dow Jones plunged 870 points, yields surged, and the dollar weakened after Trump escalated his threats of tariffs related to his Greenland purchase.
On January 21, 2025, at 2:55 PM, CNBC reported that: U.S. stock futures remained near parity Tuesday night, after the stock market experienced its sharpest decline in three months during regular trading hours. Dow Jones futures rose 61 points, or about 0.1%, while S&P 500 futures and Nasdaq 100 futures edged up slightly, nearly the same percentage.
In the preceding day, U.S. stocks plummeted amid concerns over trade policy after President Donald Trump escalated his threats of tariffs on Greenland ahead of his Davos summit on Wednesday. The Dow Jones plunged more than 870 points (-1.8%), the S&P 500 fell about 2.1%, and the Nasdaq Composite dropped 2.4%, primarily driven by selling in technology stocks. This resulted in all three indices recording their worst daily performances since October 10th, dragging the S&P 500 and Nasdaq back into negative territory since the beginning of 2569.
The selling pressure, known as the “sell America trade,” was accompanied by a surge in U.S. government bond yields and a weakening dollar. The 10-year bond yield surged and even touched above 4.3% during the day.
Meanwhile, Trump continued to push the issue. "Occupying Greenland" And he threatened to impose a 200% tax on French wine and champagne after reports that President Emmanuel Macron "rejected" a seat on Trump's "peace committee" on Gaza.
Furthermore, over the weekend, Trump stated that imports from the eight NATO member countries would be subject to progressively increasing tariffs “until the Greenland acquisition deal is fully completed,” starting at 10% on February 1st and rising to 25% on June 1st, according to a post on Truth Social.
Denmark has also made moves, with AkademikerPension, a Danish pension fund provider, stating on Tuesday that it will gradually divest its holdings of approximately $100 million in U.S. government bonds amid concerns over U.S. finances and debt, and heightened U.S.-Denmark tensions. Strategists at PNC Asset Management believe that while this isn't a major retreat yet, there's a possibility the atmosphere could worsen before it improves, and investors may begin adjusting their portfolios to cope.
This week also sees a large number of corporate earnings reports, which investors hope will help support the market. Netflix shares fell in after-market trading despite the company reporting slightly better-than-expected fourth-quarter earnings. On Wednesday, Johnson & Johnson, Halliburton, and Travelers are scheduled to release their earnings, respectively.
refer : cnbc.com
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