Investors flee from the U.S. as Trump doubles down on Greenland
U.S. President Donald Trump looks on during a press conference at the White House as he enters one year into his second term in office on January 20, 2026 in Washington, DC, USA.
Nathan Howard | Reuters
Markets showed classic signs of a “sell America” trade on Tuesday as investors avoided rising risks tied to Washington’s foreign policy.
Greenlandic Prime Minister Jens-Frederik Nielsen clarified the issue late Tuesday, saying that “the other side” (apparently referring to the United States) had not ruled out using military force to seize control of the island.
Major US indices had their worst day since October on Tuesday. S&P 500 And Nasdaq Composite It has entered negative territory for 2026. VIX indexWall Street’s “fear gauge” rose to 20.99. Meanwhile, bond yields increased US Dollar Index fell and gold prices reached new records.
These moves reflected concerns voiced by Bridgewater Associates founder Ray Dalio, who warned that rising tensions could spill over into capital markets.
U.S. President Donald Trump’s aggressive moves to annex Greenland could prompt foreign governments and investors to reconsider their appetite for U.S. assets, Dalio said Tuesday.
“On the other side of trade deficits and trade wars, you have capital and capital wars,” Dalio told CNBC’s “Squawk Box” program at the World Economic Forum in Davos, Switzerland.
An early signal came from Denmark. retirement fund AcademicianRetirement He said he would sell about $100 million in the U.S. Treasury.
The decision was motivated by concerns about “poverty”. [U.S.] government finances” and “not directly related to the ongoing rift between states.” [U.S.] “and Europe,” said Anders Schelde, the fund’s chief investment officer, but added that recent tensions between the US and Europe “do not make the decision difficult to make.”
US officials took a defiant stance. “The United States is back, and this is what U.S. leadership looks like,” Treasury Secretary Scott Bessent told CNBC in Davos. Bessent made the comments before markets closed on Tuesday.
International reaction to Trump’s moves has been much less positive. The Arctic island’s commerce minister told CNBC on Tuesday that Greenlanders were “stunned” by the US president, while French President Emmanuel Macron lashed out at “tyrants” and “brutality” – without giving details – as he called for the removal of US tariffs on Europe.
However, despite the anger in recent days, Trump does not seem to be backing down.
“As you know, I’m leaving Davos tonight and we have several meetings planned in Greenland,” Trump said Tuesday. “I think things will turn out pretty well.”
Trump may be right. The most pressing question that will shake the markets is: For whom will you achieve extremely good results?
What you need to know today
Be prepared for ‘anything’: Greenland Prime Minister. The island’s prime minister, Jens-Frederik Nielsen, said on Tuesday that “the use of military force is unlikely, but Not yet ignored by the USA
US markets fell on Greenland concerns. On Tuesday, the S&P 500 lost 2.06%, the Dow Jones Industrial Average lost 1.76% and the Nasdaq Composite lost 2.39%. While Asia-Pacific markets mostly declined on Wednesday, spot gold prices continued their rise and broke a new record.
Inflation in the UK in December is hotter than expected. The consumer price index rose to 3.4% for the month, above the 3.3% forecast of economists surveyed by Reuters. Core inflation remained unchanged compared to November. The figures raise doubts about whether the BOE will continue its interest rate cut expected in February.
Netflix announced narrow earnings record. Earnings per share in the fourth quarter came in at 56 cents, one cent higher than expected; Revenue was $12.05 billion versus $11.97 billion estimated. In the early hours of Tuesday, netflix changed it Warner Bros. discovery Offer an all cash offer.
[PRO] There are doubts that the sell-off in Greenland will continue. Despite consternation over Trump’s “weaponization of tariffs,” tensions may eventually calm down, Wall Street analysts said.
