Wall Street futures decline up to 2% amid Trump's tariff threats over Greenland

Wall Street futures see profit booking in trade.

• US stock futures fell after Trump threatened tariffs on NATO allies over Greenland
• Dollar hit a one-week low as US equities and bonds faced selling pressure
• Investors await earnings from Netflix, J&J, Intel, and a Supreme Court tariff ruling.

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Wall Street futures fell sharply on Tuesday as US President Donald Trump’s renewed tariff threats against European allies over Greenland revived concerns around a potential ‘Sell America’ trade.

The dollar slipped to a one-week low after comments from the White House on Greenland’s future triggered selling pressure across US equities and government bonds.

US markets observed holiday on Monday on account of Martin Luther King Jr. Day.

Devarsh Vakil, Head of Prime Research at HDFC Securities, said US stock futures declined after President Trump threatened to impose 10 percent tariffs on eight NATO allies from February 1, which could rise to 25 percent by June 1, linked to his demands over Greenland. He added that investors are also bracing for quarterly earnings from Netflix, Johnson & Johnson and Intel this week, with corporate guidance gaining importance amid geopolitical uncertainty.

At around 5 pm IST, Nasdaq 100 futures were down up to 2 percent, S&P 500 futures slipped 1.5 percent, while Dow Jones Industrial Average futures fell 1.4 percent, indicating a weak start for US equities.

Investors are also awaiting a likely US Supreme Court decision on Trump-era tariffs.

In Asian markets, South Korea's Kospi index, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled lower.

Markets in Europe were trading over 1 per cent lower.

Back home, extending its previous day's decline, the Sensex tumbled 1,065.71 points, or 1.28 percent to settle at 82,180.47. During the day, it dropped 1,235.6 points, or 1.48 percent to 82,010.58.

The Nifty tanked 353 points, or 1.38 percent to end at 25,232.50, marking its steepest single day decline since April 7, 2025. The sharp fall dragged the index to its lowest closing level since October 15, 2025.

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