How Greenland could turn into a Big Tech problem, according to Morgan Stanley’s Mike Wilson

Core Viewpoint - The ongoing U.S.-EU tensions over Greenland may negatively impact Big Tech stocks, with Wall Street showing readiness to sell stocks amid uncertainty [1][6]. Group 1: Market Reactions - Citigroup has downgraded European equities for the first time in a year, citing potential earnings fallout from the U.S.-EU spat [2]. - Morgan Stanley's chief U.S. equity strategist, Mike Wilson, anticipates a contained direct cost impact on major U.S. indices from new tariff threats, but smaller sectors like autos and healthcare are at higher risk [3][4]. Group 2: Potential Risks - Wilson expresses concern that the EU may activate its 'anti-coercion' tool, which could significantly impact U.S. mega-cap companies, particularly in the tech sector [4][7]. - The Anti-Coercion Instrument could lead to a range of policy tools beyond tariffs, including investment restrictions and taxation on U.S. digital services [5]. Group 3: Market Sentiment - Nasdaq-100 futures are reflecting concerns about potential losses for Big Tech, especially with earnings reports approaching [6]. - Analysts suggest that a market slump could occur if U.S.-Europe tensions escalate beyond tariffs to more severe confrontations, such as limiting market access for Big Tech [7].