The worst session on Wall Street since the April meltdown – US Market Wrap

Stocks, bonds, and the dollar tumbled as Trump threatened tariffs on several European countries ahead of high-level meetings in Davos, escalating a conflict over his plans to take over Greenland. Bitcoin plummeted. Gold reached all-time highs.
The fresh tensions pushed the S&P 500 down 2.1%, wiping out its 2026 gain. A measure of equities volatility surged to its highest level since November. Long-term US rates rose to a four-month high, as investors reacted to a sell-off in Japanese bonds and news that a Danish pension fund plans to abandon Treasuries. The dollar fell versus most major currencies.

Meanwhile, the US Supreme Court declined to rule on Trump’s tariffs on Tuesday, implying that a challenge to his signature economic policy will likely take at least another month to resolve.
The S&P 500 experienced its largest loss since October. Small caps also declined, but they outperformed the US market index for the 12th consecutive session. A gauge of technology megacaps fell 3.1%. Bitcoin fell below $90,000.

The yield on 10-year Treasuries rose seven basis points to 4.29%. Japanese bond prices fell further as investors rejected Prime Minister Sanae Takaichi’s election campaign promise to reduce food taxes. The dollar fell 0.3%. Gold surged above $4,700 per ounce, setting a new record. Oil surpassed $60 per barrel.