US Stocks Start the Week Sharply Lower
2026-01-20 21:01
By
Felipe Alarcon
1 min. read
US stocks closed sharply lower, with the S&P 500 down 1.9%, the Dow falling 1.7%, and the Nasdaq sliding 1.9%.
Losses were driven by an escalation in trade risk after President Trump threatened new tariffs of 10% from February 1st, rising to 25% by June, on eight European countries linked to opposition to US control of Greenland, undermining cross border trade assumptions.
Selling pressure intensified as Treasury yields jumped, with reports that a Danish pension fund plans to cut exposure to US Treasuries adding to risk aversion and weighing on rate sensitive and growth stocks.
Large cap tech and semiconductors led declines, with Nvidia (-4.4%), Broadcom (-5.4%), and Oracle (-5.8%) posting steep losses as investors reduced high beta exposure, while cyclicals and industrials also fell.
Corporate news offered little support, as 3M tumbled 7% on weaker guidance despite a revenue beat, while Netflix stock lost 1.1% on reports it may pursue an all cash bid for Paramount.