Stocks Tumble, Treasury Yields Jump To 5-Month Highs: What's Moving Markets Tuesday?
Wall Street tumbled on Tuesday, reopening after the Martin Luther King Jr. Day holiday, as risk-off sentiment intensified following President Donald Trump's aggressive new trade stance toward Europe.
The S&P 500 fell 1.5% to 6,840, eyeing its worst session since late November, led lower by consumer discretionary and technology stocks. The Nasdaq 100 dropped 1.4%, the Dow Jones Industrial Average lost 1.3%, while the Russell 2000 eased 0.8%.
Trump threatened several European countries with an additional 10% tariffs starting Feb. 1 if negotiations over Greenland control fail, with duties potentially rising to 25% from June.
European officials warned of retaliation that could affect up to 25% of U.S. exports to Europe, potentially including services, and floated the possibility of reducing Treasury holdings. Trump also warned French President Emmanuel Macron that tariffs as high as 200% could be imposed on French wines and champagne.
Markets are now focused on Trump's appearance on Wednesday at the World Economic Forum in Davos.
Risk-off sentiment spilled into fixed income. Long-dated Treasury yields climbed to their highest levels since late September, with the 30-year yield rising 6 basis points to 4.90%. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) fell about 1%.
Safe-haven demand pushed precious metals to fresh highs. Gold jumped 1.9% to $4,760 per ounce, while silver surged nearly 5% to $94.50 an ounce. Meanwhile, colder-than-expected weather forecasts sent U.S. natural gas prices soaring more than 24%, marking the biggest one-day gain since late October 2024.
In crypto markets, Bitcoin (CRYPTO: BTC) sunk over 3% below $90,000, sending shares of Strategy Inc. (NASDAQ:MSTR) tumble nearly 8%.
All major companies reporting before the open topped estimates, but investor reaction remained cautious. 3M Company (NYSE:MMM) slid more than 7% after the company warned that tariff uncertainty is clouding its outlook. DR Horton Inc. (NYSE:DHI) slipped 0.5% despite stronger-than-expected results.
Bucking the trend, U.S. Bancorp (NYSE:USB) gained 0.5%, while Fifth Third Bancorp (NASDAQ:FITB) rose 2% following earnings beats.
After the close, investors are awaiting results from Netflix Inc. (NASDAQ:NFLX), United Airlines Holdings Inc. (NASDAQ:UAL) and Interactive Brokers Inc. (NASDAQ:IBKR).
Monday’s Performance In Major US Indices, ETFs
| Index | Price | Chg |
|---|---|---|
| Russell 2000 | 2,658.50 | -0.7% |
| Dow Jones | 48,727.77 | -1.3% |
| Nasdaq 100 | 25,177.62 | -1.4% |
| S&P 500 | 6,840.93 | -1.4% |
According to Benzinga Pro data:
- The iShares Russell 2000 ETF (NYSE:IWM) fell 0.7% to $264.01.
- The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) slid 1.3% to $486.89.
- The Invesco QQQ Trust (NASDAQ:QQQ) dropped 1.6% to $611.56.
- The Vanguard S&P 500 ETF (NYSE:VOO) declined 1.5% to $626.33.
- The Consumer Staples Select Sector SPDR Fund (NYSE:XLP) led gains, up 0.4% to $82.46, while the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) sank 2.1% to $119.78.
Russell 1000’s Top Gainers
| Stock | % Change |
|---|---|
| Acadia Healthcare Company, Inc. (NASDAQ:ACHC) | +23.29% |
| Qiagen N.V. (NYSE:QGEN) | +18.80% |
| BellRing Brands, Inc. (NYSE:BRBR) | +9.26% |
| Lumentum Holdings Inc. (NASDAQ:LITE) | +8.58% |
| Sandisk Corporation (NASDAQ:SDNK) | +7.76% |
Russell 1000’s Top Losers
| Stock | % Change |
|---|---|
| Strategy Inc. | -7.92% |
| Roblox Corporation (NYSE:RBLX) | -7.82% |
| Globant S.A. (NYSE:GLOB) | -7.80% |
| 3M Company | -7.71% |
| NetApp, Inc. (NASDAQ:NTAP) | -7.40% |
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