US stock futures looked set to open lower during the shortened week on Tuesday, January 20, 2026, after President Donald Trump, over the weekend, renewed tariff threats against European nations in the context of his push to take control of Greenland. The episode triggered a slide in risk assets and a weaker dollar, reflecting revived Sell America flows in which US stocks, Treasuries, and the currency come under pressure together amid rising geopolitical risk.
In premarket trading, S&P 500 futures were down 1.77% and Nasdaq futures fell 2.15%, while the 10-year US Treasury yield climbed to 4.291%, its highest level since early September. Adding a counterbalance, US Treasury Secretary Scott Bessent attempted to cool the reaction. Speaking in Davos on January 20, 2026, Bessent dismissed concerns about a prolonged trade conflict as exaggerated and said discussions with European partners would continue, urging markets to avoid what he described as hysteria around the Greenland issue.
The renewed volatility comes as the US earnings season is just getting underway. If trade tensions persist or escalate further, management teams may face greater difficulty providing forward guidance, potentially adding another layer of uncertainty to earnings outlooks.