Dow, S&P 500, Nasdaq Slide; Why Stocks Are Tumbling; Trump Tariff Fears; Netflix, Micron, Intel, Nvidia, More Movers
It’s double trouble for markets today. Stocks and bonds are both sliding, with headlines on the U.S. fight for Greenland dominating trading action.
The Dow is down 726 points, or 1.6%. The S&P 500 is down 1.4%, while the Nasdaq is down 1.8%.
Price action in the bond market was equally dismal, with the 10-year Treasury yield now reaching for 4.3%, a level not seen in months. Higher yields mean prices of bonds are declining as the two move in opposite directions.
The fire sale of stocks makes sense; risky assets are selling off as President Trump threatens further tariffs on European allies if a deal on Greenland isn’t reached. Treasuries–and the dollar, which is down 0.9% against major currencies–are considered safer assets, and their large losses underscore a ‘Sell America’ trade.
“Investors are concerned that the threat of a 200% tariff on French wine and champagne could be the beginning of a further escalation in the trade tensions that many had hoped to leave behind in 2025,” wrote wrote Ian Lyngen, head of U.S. rates strategy on Tuesday. “The stubbornly narrow yield range in Treasuries has finally broken and it’s done so in a convincingly bond bearish fashion.”
The biggest move overnight was in the Japanese market, where the yield on the 40-year bond soared past 4%, a first since its debut in 2007. The result was due to poor demand seen in a bond auction, a sign that investors disapproved of the government’s new spending plan.
In the U.S., no major Treasury auctions are scheduled for this week.
