Wall Street opened the week on a cautious note as investors weighed geopolitical uncertainty, shifting risk appetite, and a slew of earnings.
- U.S. futures slipped as tariff tensions linked to Greenland resurfaced.
- Markets turned cautious ahead of earnings from Netflix, United Airlines, and KeyCorp.
- Stocks including Nvidia, Micron, ImmunityBio, and Critical Metals were in focus on fresh updates.
U.S. stock futures pointed lower on Monday night as markets reopened after the Martin Luther King Jr. Day holiday, with investors reacting to renewed trade tensions and geopolitical uncertainty.
As of 9:11 p.m. ET, Nasdaq 100 futures were down 1%, while S&P 500 futures slipped 0.9%. Dow futures fell 0.9%.
On Stocktwits, retail sentiment toward the SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust (QQQ) was ‘bearish’ amid ‘high’ message volume, while sentiment toward the SPDR Dow Jones Industrial Average ETF Trust (DIA) was ‘extremely bearish’ amid ‘high’ message volume.
Market Drivers
Markets reacted to an escalation in trade after U.S. President Donald Trump said countries opposing the sale of Greenland to the United States would face new tariffs.
In a Truth Social post on Saturday, Trump said imports from eight NATO members would face tariffs beginning at 10% on Feb. 1, rising to 25% by June 1, unless a deal is reached for what he described as the “complete and total purchase of Greenland.”
Monday night marked the first opportunity for U.S. investors to fully respond, as markets were closed earlier in the day for the MLK Jr. holiday. In the prior session, the Dow Jones Industrial Average slipped 0.17%, while the S&P 500 edged down 0.06% and the Nasdaq Composite fell 0.06%.
Separately, Intercontinental Exchange said it has developed a platform for trading and on-chain settlement of tokenized securities, as the exchange looks to tap growing global demand for U.S. equities and move toward 24-hour trading, pending regulatory approvals.
Dan Niles, founder of Niles Investment Management, said on X that the Greenland dispute could complicate expectations for a strong start to the year that had been supported by easier financial conditions and tax benefits expected in early 2026, though he noted policymakers remain mindful of last year’s sharp market selloff during the tariff escalation.
Meanwhile, the World Economic Forum’s annual meeting began this week in Davos, Switzerland, with Trump expected to arrive on Wednesday, when he is due to deliver a special address. He is also expected to meet global CEOs and founders on the sidelines of the event, with CEOs from sectors including financial services, crypto and consulting invited to a reception following his address, according to a Reuters report, citing sources familiar with the matter.
Investors are also watching a potential Supreme Court ruling, expected as soon as next week, on whether to strike down Trump’s tariffs imposed under the International Emergency Economic Powers Act. Treasury Secretary Scott Bessent said on Sunday he believes it is “very unlikely” the court would overrule the president’s signature economic policy.
Trending Stocks To Watch
Micron Technology (MU): Micron said Tuesday it signed a letter of intent to acquire Powerchip Semiconductor’s P5 fabrication site in Taiwan for $1.8 billion.
Nvidia (NVDA): Nvidia remained in focus after Reuters reported last week that Chinese customs blocked its H200 AI chips, with officials issuing guidance last week discouraging purchases.
Venus Concept (VERO): Madryn Asset Management disclosed on Friday that it raised its stake to 91% and held board discussions on Jan. 13 about cost cuts and potential delisting.
ImmunityBio (IBRX): ImmunityBio said on Friday that enrollment in its QUILT-2.005 bladder cancer trial exceeded 85%, alongside updated clinical data and recent Saudi FDA approvals.
Critical Metals (CRML): Critical Metals last week executed a non-binding term sheet to form a 50/50 rare earth processing joint venture in Saudi Arabia.
Broader Markets
In broader markets, U.S. Treasury yields edged higher as trading resumed after the market holiday, with the benchmark 10-year note up about three basis points near 4.26%.
The dollar softened, with the dollar index slipping 0.1% to 99.004, its lowest level since Jan. 14, as investors pared exposure to U.S. assets amid renewed trade uncertainty.
Gold and silver touched record highs on Monday. Spot gold rose 1.7% to $4,672.49 an ounce after briefly reaching a record $4,689.39, while U.S. gold futures for February delivery gained 1.8% to $4,677.70.
Asian markets moved lower, with equities under pressure as investors tracked geopolitical developments and political events in Japan, where Prime Minister Sanae Takaichi called snap elections for Feb. 8.
Among catalysts for the day are quarterly Corporate earnings from companies including Netflix, United Airlines Holdings and KeyCorp.
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