Wall Street's ‘Fear Gauge' Spikes To Highest Level Since November As Trump Escalates Greenland Threats

Core Viewpoint - The Cboe Volatility Index (VIX) surged nearly 28% to around 20.30, indicating heightened market fear due to President Trump's tariff threats against European countries and his push for U.S. control over Greenland [2][3]. Market Reactions - The S&P 500 index fell approximately 1.5%, losing 107 points to around 6,869, despite nearing the 7,000-point milestone in recent sessions [3]. - The Dow Jones Industrial Average dropped 737 points (1.4%) to 48,648, with significant losses from major companies such as 3M (down 5.5%), Amazon (2.8%), and Amgen (2.4%) [4]. - The tech-heavy Nasdaq also fell 1.4%, with declines from companies like Shopify (3.2%), Broadcom (2.6%), and Tesla (2.4%) [4]. - European markets reacted negatively, with the STOXX Europe 50 down 1.3%, the FTSE 100 declining 1%, Germany's DAX falling 1.4%, and France's CAC 40 decreasing 1.1% [4]. Tariff Details - Trump's proposed tariffs will affect Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, starting at 10% on February 1 and increasing to 25% by June 1 [5]. - The tariffs are a response to these countries deploying military personnel to Greenland, with Trump asserting that China and Russia are seeking control over the territory [5].