Dow tumbles over 850 pts, posts biggest daily drop in 3 months; Greenland tariff threat triggers selloff

Market Performance - All three major U.S. equity indexes experienced their largest one-day declines in three months, with the S&P 500 dropping 143.15 points (2.06%) to 6,796.86 points, the Nasdaq Composite falling 561.07 points (2.39%) to 22,954.32, and the Dow Jones Industrial Average decreasing by 870.74 points (1.76%) to 48,488.59 [2][13] Tariff Implications - President Trump's announcement of additional 10% import tariffs on goods from several European countries, effective February 1, and increasing to 25% on June 1, has raised concerns about renewed market volatility [6][13] - The reintroduction of tariff threats has been compared to previous market disruptions, notably in April, which pushed the S&P 500 close to bear market territory [7][13] Investor Sentiment - Despite the market selloff, some analysts, including Jamie Cox from Harris Financial Group, do not see signs of a mass exodus from equities and are cautious about predicting a significant market correction [8][9] Bond Market Movements - Japanese government bonds saw a significant decline, leading to record high yields, while the Tokyo stock market and yen also fell due to political uncertainty, impacting European government bond costs and U.S. Treasury yields [10][13] Economic Outlook - The U.S. economy remains robust, with upcoming data releases including the third-quarter GDP update, January PMI readings, and the Personal Consumption Expenditures report, which is closely monitored by the Federal Reserve [11][13] - The earnings season is gaining momentum, with major companies like Netflix set to report quarterly earnings, indicating ongoing corporate performance scrutiny [12][13]