Key Takeaways

• NewsBusiness NewsInternational Business NewsWall Street tumbles!
• The expert further added that he would be surprised if markets fell by 3% to 5% this week.
• The move sparked a widespread risk-off selloff across asset classes, triggering concerns about another round of market volatility.

Key Development 1

NewsBusiness NewsInternational Business NewsWall Street tumbles!

Dow sheds 850 points, S&P 500 slips 2% — Here's how Trump's Greenland bid impacted US stocksTrendingTop stocks to buyStock market todayTrump tariffsSilver price todayStandard deductionBudget 2026Gold price predictionTop stocks to buyStock market todayTrump tariffsSilver price todayStandard deductionBudget 2026Gold price predictionTop stocks to buyStock market todayTrump tariffsSilver price todayStandard deductionBudget 2026Gold price predictionWall Street tumbles!

Tuesday marked the first chance for US investors to react to Trump’s weekend remarks, as markets were closed on Monday for Martin Luther King, Jr Day.

Dow sheds 850 points, S&P 500 slips 2% — Here's how Trump's Greenland bid impacted US stocksTOI Business Desk / TIMESOFINDIA.COM / Jan 21, 2026, 08:58 ISTCommentsShareAA+Text SizeSmallMediumLarge Wall street took a sharp hit on Tuesday, plunging to their steepest single-day losses in three months, as investors reacted to US President Donald Trump's fresh tariff threats targeting Europe.

Key Development 2

The expert further added that he would be surprised if markets fell by 3% to 5% this week.

Trading activity also accelerated, with almost 20.6 billion shares changing hands on US exchanges, well above the 20-day average of 17.01 billion.In India, the NSE and BSE benchmarks also ended the day in red, falling over 1% each, erroding investors of almost Rs 9.86 lakh crore.

While Nifty50 slid 1.38% to close at 25,232.5, Sensex fell 1,065.71 points, or 1.28%, to settle at 82,180.47.Elsewhere, on Wednesday, Asian stocks also showed losses for a third session, amid ongoing geopolitical tensions.Short-term jitters or a longer mood swing?

The move sparked a widespread risk-off selloff across asset classes, triggering concerns about another round of market volatility.

Key Development 3

Bitcoin, which usually benefits during periods of market stress, declined more than 3%.

The impact was not limited to just equities.

The return of tariff-related uncertainty was similar to market disruptions seen earlier in April, during what was referred to as “Liberation Day”, when Trump’s trade measures against global partners pushed the S&P 500 close to bear market territory.The CBOE Volatility Index, a measure that indicates market fear, jumped to 20.09 points, its highest closing level since November 24.

Jamie Cox, managing partner at Harris Financial Group, stated he was not seeing evidence of investors exiting the market.

Key Development 4

Investors are set to receive a series of economic indicators this week, including an update to third-quarter GDP, January PMI data and the Personal Consumption Expenditures report, the Federal Reserve’s preferred inflation measure.

Both the S&P 500 and the Nasdaq ended the session below their 50-day moving averages, Reuters reported.

Meanwhile, leaders in Greenland, an autonomous territory of Denmark, and Denmark have maintained that the island is not for sale.

Despite the renewed tariff threats and volatility across bond markets, the US economy continues to show strength.

Key Development 5

The earnings season is also gathering momentum, with several major companies due to report results.

While investor sentiment was clearly strained, questions remain over whether the sharp reaction is a short-lived response or signals deeper market implications.

He further added that the levies would rise to 25% from June 1 and remain in place until the US reached a deal to purchase Greenland.

The Dow Jones Industrial Average fell 870.74 points, or 1.76%, settling at 48,488.59.

Key Development 6

Japanese government bonds fell sharply on Tuesday, sending yields to record highs, while Tokyo stocks and the yen weakened after Prime Minister Sanae Takaichi called for a snap election, raising concerns over Japan’s fiscal health.

While the S&P 500 dropped 143.15 points, or 2.06%, to close at 6,796.86, Nasdaq Composite tumbled 561.07 points, or 2.39%, to 22,954.32.

Netflix was among those in focus, ending the session 0.8% lower ahead of its quarterly earnings announcement after market close.About the AuthorTOI Business DeskThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India.

Trump stated that additional 10% import tariffs would be imposed from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Great Britain, all countries already facing US tariffs.

Key Development 7

The moves contributed to higher yields on longer-dated European government bonds, while selling pressure in US Treasuries was more pronounced at the long end of the curve.

"I'm not at the point yet where I'm willing to say what is happening with Greenland, and the resurgence of the tariff threat back and forth, is going to precipitate a correction in the equities markets," he told Reuters.

In other asset classes, gold climbed to fresh record highs as investors rushed towards safer assets, while US Treasuries came under renewed selling pressure, pushing borrowing costs higher.

Cox pointed instead to developments in bond markets as a potentially more significant risk.

Key Development 8

All three major US indices posted their worst daily performance since October 10, last year.

The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies.

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