Stock Index Futures Plunge After Trump’s Tariff Threats on Europe Over Greenland

Market Overview - Wall Street's major equity averages closed slightly lower, with power suppliers like Talen Energy (TLN) and Constellation Energy (CEG) leading the declines, dropping over -11% and -9% respectively [1] - Mosaic (MOS) fell over -4% after weak preliminary Q4 results, while J.B. Hunt Transport Services (JBHT) reported weaker-than-expected Q4 revenue, leading to a decline of more than -1% [1] - On a positive note, Micron Technology (MU) rose over +7% after a director purchased approximately $7.8 million worth of shares [1] Economic Data - U.S. industrial production rose +0.4% month-over-month in December, exceeding expectations of +0.1%, while manufacturing production unexpectedly increased by +0.2% against an expected decline of -0.2% [6] - The upcoming U.S. core personal consumption expenditures (PCE) price index, a key inflation gauge, is highly anticipated, especially since it was delayed due to a government shutdown [9] Corporate Earnings - The fourth-quarter corporate earnings season is heating up, with major companies like Netflix (NFLX), Intel (INTC), and Johnson & Johnson (JNJ) expected to report. S&P 500 companies are projected to see an average earnings increase of +8.4% for Q4 compared to the previous year [11] International Developments - European equities faced downgrades to Neutral by Citi strategists due to renewed transatlantic tensions, particularly related to President Trump's tariff threats against European nations opposing his Greenland acquisition bid [14] - In Japan, concerns over public finances are affecting market sentiment, with long-term government bond yields reaching record highs amid speculation about potential consumption tax cuts [19]