On January 20, 2026, major US stock indexes declined sharply, with the S&P 500 dropping by 1.29%, the Dow Jones Industrials down by 1.22%, and the Nasdaq 100 falling 1.41%, marking two-week lows. This downturn is attributed to escalating geopolitical tensions between the US and Europe regarding Greenland and President Trump’s threats of tariffs on French goods, which have instigated a risk-off sentiment in markets.
US bond yields also surged, with the 10-year Treasury note yield reaching 4.31%, its highest in 4.75 months, influenced by rising inflation expectations. Meanwhile, Japanese bond yields hit a 27-year high at 2.359%, further impacting global markets. In the commodities sector, natural gas prices soared over 25%, elevating US natural gas stocks, and both gold and silver prices reached all-time highs due to safe-haven buying amidst the geopolitical crisis.
In earnings news, 88% of 33 reporting S&P 500 companies exceeded expectations, driving an anticipated 8.4% earnings growth for Q4. Pending home sales for December are predicted to fall 0.5% month-over-month, while initial unemployment claims are expected to rise to 210,000. The upcoming week will focus on economic reports and evolving dynamics related to tariffs and Federal Reserve leadership.
