New York, January 20, 2026, 05:56 EST — Premarket
- Before the opening bell, Dow futures dipped as traders returned from the long holiday weekend.
- President Donald Trump’s fresh tariff threat linked to Greenland rattled risk appetite and boosted demand for safe havens.
- Attention now shifts to earnings reports, crucial U.S. economic data due later this week, and Supreme Court hearings that have the potential to shake up rates and market sentiment.
Dow Jones Industrial Average futures plunged early Tuesday, pointing to a rough start for Wall Street after President Donald Trump’s tariff warning on Europe related to Greenland shook global markets. By 5:32 a.m. ET, Dow e-minis were down 728 points, or 1.47%. 1
The selloff is significant now that U.S. markets reopen after Monday’s Martin Luther King Jr. Day holiday, with traders rushing to price in a new trade shock all at once. Early action also pointed to a surge in hedging demand as investors came back to their screens.
The Dow finished Friday down 83.11 points, or 0.17%, landing at 49,359.33. “One of the other reasons markets have been flat-lining is we’re at the start of the earnings season,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial. 2
Beyond stocks, the dollar slipped as Treasury yields edged higher, reflecting unease over the policy outlook rather than a straightforward flight to safety. Kyle Rodda, senior market analyst at Capital.com, noted investors still clung to “hope” the standoff would end on its own but cautioned about the risk of a sharp clash with Europe. MUFG economist Henry Cook added that even if tensions ease, this episode might undermine confidence in any future deal. 3
Gold surged past $4,700 an ounce, hitting fresh highs as investors sought safety amid tariff jitters and uncertainty over U.S. policy and interest rates. “Growth concerns driven by threats of additional tariffs … are the drivers pushing gold to a new record high,” UBS analyst Giovanni Staunovo said. Traders also braced for a Supreme Court ruling that could challenge a president’s power to fire Federal Reserve governors. 4
This legal cloud isn’t just theoretical for markets. The Supreme Court will hear arguments this week in a case involving Fed Governor Lisa Cook, with Chair Jerome Powell expected to attend Wednesday’s session, a source told Reuters. Former Cleveland Fed President Loretta Mester said the ruling could leave “the door open” on how the court interprets “cause” protections. Economist Jon Faust cautioned that the outcome might still chip away at the Fed’s political insulation. 5
Deal news shook up the market. GSK announced it will acquire RAPT Therapeutics for $2.2 billion, offering $58 per share. That move sent the U.S. biotech’s stock sharply higher in premarket trading. GSK Chief Scientific Officer Tony Wood said the asset aligns with their focus on “validated targets” and unmet medical needs. 6
Earnings this week will reveal if investors are ready to move beyond tariff concerns. Johnson & Johnson, Procter & Gamble, and Intel are set to report, with Netflix scheduled to release its numbers after Tuesday’s close. 7
The data calendar is packed. Housing starts and permits drop Wednesday, followed by GDP and weekly jobless claims Thursday. On Friday, expect several January business surveys and sentiment reports, according to Econoday’s schedule. 8
Policy expectations linger in the background. The Federal Reserve’s next policy meeting, set for January 27-28, could steer the rate outlook and influence how sharply equities react when volatility surges. 9
That early futures dip hinges on a big “if.” If we get a clear sign of easing tensions or even just a pause in the rhetoric, buyers could jump back in fast, especially with earnings season kicking off. But if things worsen—a sharper break with Europe or retaliation talk turning into real moves—volatility could spike again, pushing investors to trim risk further.
Traders are gearing up for a jittery start. Key events to watch include Wednesday’s Supreme Court hearing on the Fed, Thursday’s GDP and jobless claims data, and Friday’s January business surveys. Any new remarks from Davos that shift the Greenland dispute’s direction could also shake markets.
