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

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

Russell 1000’s Top Losers

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