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Dow Plunges 870 as Trump’s Greenland Tariff Threat Sparks Worst Day Since October

U.S. stocks tumbled Tuesday after President Donald Trump escalated trade threats tied to acquiring Greenland, spooking investors and triggering a broader risk-off move. The Dow fell 870 points (-1.76%) to 48,488.59, the S&P 500 dropped 2.06% to 6,796.86, and the Nasdaq slid 2.39% to 22,954.32—each logging its worst session since October. The selloff pushed the S&P 500 and Nasdaq into the red for 2026 so far (down 0.7% and 1.2%, respectively), while the VIX “fear gauge” jumped as high as 20.99.

The catalyst was Trump’s statement that imports from eight NATO members would face escalating tariffs “until” a deal is reached for the “Complete and Total purchase of Greenland,” starting at 10% on Feb. 1 and rising to 25% by June 1. He also floated 200% tariffs on French wine and champagne and criticized the U.K. over the Chagos Islands, framing both as national-security context for why Greenland “has to be acquired.” Markets also reacted to signs of strain in demand for U.S. assets: Treasury yields rose, the dollar fell, and Denmark’s AkademikerPension said it would exit U.S. Treasurys due to concerns about U.S. debt.

Commentary highlighted that stocks were already priced for “perfection,” making them vulnerable to policy shocks—especially since the new tariff pressure targets close U.S. allies. European leaders reportedly called the threats “unacceptable” and weighed countermeasures, including the EU’s Anti-Coercion Instrument. Ray Dalio warned that trade conflicts can morph into “capital wars” if investors become less willing to fund U.S. debt. Still, Citi’s Scott Chronert characterized the selloff as a potential “buy the dip” opportunity and reiterated a 7,700 S&P 500 target (about 11% upside), while noting macro risks need monitoring. Read More. 

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Central Banks Rush for Gold as Confidence in the Dollar Wobbles

Central banks around the world are rapidly increasing their gold holdings as geopolitical tensions rise and confidence in the U.S. dollar weakens. The article highlights how gold’s share of global central bank reserves has doubled over the past decade to more than a quarter—its highest level in nearly 30 years—driven by a desire for an “insurance policy” against volatility and the risk that dollar-linked reserves could be frozen or weaponized via sanctions.

It points to growing unease over U.S. policy uncertainty and concerns about the credibility and independence of U.S. institutions, alongside precedents like the freezing of Russia’s reserves and Venezuela’s restricted access to gold held abroad. As a result, many central banks are not only buying more gold but also repatriating bullion from overseas vaults back to domestic storage for control and security.

Despite the dollar remaining the dominant reserve currency (though its share has slipped from about 66% to about 57% over a decade), the lack of a clear alternative among other fiat currencies is pushing institutions toward gold as a politically neutral store of value. The piece notes gold has overtaken the euro as the second-most important reserve asset and that central banks remain cautious about cryptocurrencies due to volatility and security concerns. Read More.