CNBC Daily Open: Investors flee from the U.S. as Trump doubles down on Greenland
CNBC·2026-01-21 07:29

Market Reaction - Major U.S. indexes experienced significant declines, marking their worst day since October, with the S&P 500 and Nasdaq Composite entering negative territory for 2026 [3] - Volatility increased, as indicated by the VIX index spiking to a high of 20.99, while bond yields rose, the U.S. Dollar Index fell, and gold prices reached new records [3] Investor Sentiment - Concerns raised by Ray Dalio suggest that escalating tensions could lead foreign governments and investors to reconsider their investments in U.S. assets [4] - The Danish pension fund AkademikerPension announced plans to sell approximately $100 million in U.S. Treasurys, citing worries over U.S. government finances [4][5] International Response - Greenland's Prime Minister expressed concerns regarding U.S. military intentions, indicating a lack of confidence in U.S. foreign policy [2] - International leaders, including French President Emmanuel Macron, criticized U.S. actions, labeling them as "bullying" and calling for the abolition of U.S. tariffs on Europe [6] U.S. Government Stance - U.S. Treasury Secretary Scott Bessent asserted a strong stance on U.S. leadership, emphasizing that "the U.S. is back" despite market reactions [5] - President Trump remained optimistic about negotiations regarding Greenland, stating that he believes outcomes will be favorable [7]