Stock Market News·2026-01-20 22:07Market Overview - U.S. equity markets faced a significant downturn on January 20, 2026, primarily due to escalating geopolitical tensions and President Trump's renewed tariff threats against several European nations [1][2] - The S&P 500 fell by 2.1%, marking its largest drop since October and turning negative for the year 2026 [2] - The Dow Jones Industrial Average decreased by 870 points (1.8%), while the Nasdaq Composite dropped by 2.4% [2] Geopolitical Impact - President Trump threatened to impose 10% tariffs on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland starting February 1, with a potential increase to 25% by June 1 if the U.S. is not allowed to purchase Greenland [2] - European markets also experienced declines, with France's CAC 40, Germany's DAX, and Italy's FTSE MIB all recording losses [2] Safe-Haven Assets - In response to market volatility, gold futures surged to a record high above $4,760 per ounce, while silver futures also reached an all-time high, surpassing $95 per ounce [3] - The yield on the 10-year Treasury note increased by seven basis points to approximately 4.29% [3] - The U.S. dollar index fell nearly 0.8% to 98.61, while West Texas Intermediate crude futures rose by 1.8% to about $60.55 per barrel [3] Technology Sector Performance - Technology stocks, particularly the "Magnificent Seven," faced significant declines, with Nvidia down 3.6%, Amazon down 3.7%, and Tesla off more than 3% [4] - Other major tech companies like Apple, Alphabet, Microsoft, and Meta Platforms saw declines ranging from 1.2% to 4.5% [4] Corporate Earnings - Microsoft remains a strong favorite among analysts, with 97% rating it as a "buy" and a median price target of $631 per share, indicating a potential 37% return over the next 12 months [5] - The company is heavily investing in AI data centers, planning to increase its total AI capacity by over 80% this year and nearly double its data center footprint over the next two years [5] - Companies like 3M and Fastenal reported quarterly results, with shares declining by approximately 7% and 2.5%, respectively, after announcements [6] Upcoming Earnings Reports - Netflix is scheduled to release its quarterly earnings report, with investors closely watching its all-cash deal to acquire Warner Bros. Discovery [7] - Other companies expected to report include Interactive Brokers Group, Progress Software, and United Airlines Holdings [7] Economic Indicators - The Consumer Price Index (CPI) for December showed inflation steady at 2.7% year-over-year, with the core rate at 2.6% year-over-year, both above the Federal Reserve's 2% target [9] - November's retail sales report indicated a broad-based gain of 0.6%, suggesting resilient consumer demand [9] Upcoming Economic Events - The week ahead includes crucial economic data and corporate earnings reports, with 31 S&P 500 companies set to release their fourth-quarter results [8] - Key economic data points to watch include GDP, Jobless Claims, Personal Income and Outlays, and the PMI Composite Flash [13]