US Stocks Plunge on Trump Tariff Threats to Europe

U.S. stocks plunged Tuesday, marking the steepest one-day drop for major indexes in three months, as President Donald Trump threatened new tariffs on imports from eight European countries amid escalating tensions over his push for American control of Greenland.

The Dow Jones Industrial Average fell 870.74 points, or 1.8 percent, to close at 48,488.59. The S&P 500 dropped 143.15 points, or 2.1 percent, to 6,796.86, while the Nasdaq Composite declined 561.07 points, or 2.4 percent, to 22,954.32. The selloff erased gains from a recent rally and pushed the S&P 500 and Nasdaq below their 50-day moving averages. Losses spread across nearly every sector, with technology stocks bearing the brunt. Nvidia shares tumbled 4.4 percent, Apple fell 3.5 percent, and Amazon dropped 2.2 percent. Retailers like Lowe's declined 3.3 percent, banks such as JPMorgan Chase lost 3.1 percent, and industrial firms including Caterpillar shed 2.5 percent. Consumer staples provided some resilience, with Colgate-Palmolive up 1.1 percent and Campbell's rising 1.5 percent.

The downturn followed Trump's announcement Saturday on Truth Social, where he stated a 10 percent import tax would begin February 1 on goods...