Wall Street has its worst day since October as Trump doubles down on threats to take Greenland.
Published On 21 Jan 2026
United States President Donald Trump’s push to take control of Greenland has rattled investors worldwide, with stock markets and the US dollar tumbling following his latest threats over the territory.
Trump, who claims that Greenland is vital to US security due to China and Russia’s strategic ambitions in the Arctic, has threatened Denmark and seven other European countries with steep tariffs unless a deal is reached to sell the self-governed Danish territory – a warning which appears to have shaken markets.
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Wall Street’s benchmark S&P 500 fell nearly 2.1 percent on Tuesday as Trump doubled down on his threats to take over the Arctic island.
The tech-focused Nasdaq Composite plunged nearly 2.4 percent, while the Dow Jones Industrial Average fell nearly 1.8 percent.
The declines marked Wall Street’s worst day since October.
The US dollar, traditionally a safe haven for investors during periods of stock market volatility, fell 0.8 percent against a basket of major currencies.
European stocks also fell on Tuesday, with the FTSE 100 in London closing about 0.7 percent lower and the DAX in Frankfurt down more than 1 percent.
Gold, which often draws buyers when uncertainty is elevated, gained nearly 2 percent, rising above $4,700 an ounce to a record high.
The sell-off in stocks continued into Wednesday in Asia, with Japan’s benchmark Nikkei 225 and South Korea’s KOSPI dropping more than 1 percent in early trading before making up much of their losses later in the morning.
Trump’s insistence that Greenland must be brought under US control has taken US-European relations to their lowest ebb in decades, prompting fears for the survival of the NATO military alliance and the free