Stock Market Today, Jan. 20: Markets Slide After Trump Tariff Threats Spark Selloff

Market Performance - The S&P 500 fell 2.06% to 6,796.76, the Nasdaq Composite dropped 2.39% to 22,954.32, and the Dow Jones Industrial Average lost 1.76% to 48,488.58, driven by a "Sell America" trade and fears over Greenland tariffs [1][3]. Sector Movements - Megacap tech stocks led the declines, with Nvidia and Tesla down 4.32% and 4.17% respectively, as investors rotated out of high-multiple AI and EV names [2]. Geopolitical Impact - President Trump's potential tariffs on European countries related to Greenland caused market recoil, highlighting how quickly geopolitical changes can impact markets, especially in high-risk sectors with elevated valuations [3][4]. Defensive Stocks Performance - Despite the overall market decline, more defensive stocks and precious metals outperformed, indicating a "risk-off" mindset among investors [4]. Long-term Market Outlook - Major U.S. markets achieved double-digit gains in 2025 for the third consecutive year, and the tariff shock from the previous April turned out to be a strong buying opportunity for investors [4]. Earnings Season - With the earnings season underway, long-term investors are advised to look for compelling entry points in high-conviction names [5].