New York, January 20, 2026, 17:05 (ET) — After-hours
- The Dow slipped 1.76% after tariff news rattled investor sentiment.
- The S&P 500 and Nasdaq each dropped over 2%, while the VIX climbed past 20.
- Attention shifts to the delayed U.S. GDP and PCE inflation figures set for release Thursday.
The Dow Jones Industrial Average dropped 870.74 points, or 1.76%, closing at 48,488.59 on Tuesday. President Donald Trump’s tariff threat linked to Greenland sparked a risk-off mood among investors. The S&P 500 slipped 2.06%, while the Nasdaq Composite fell 2.39%, both dipping below their 50-day moving averages—a key technical level. The Cboe Volatility Index (VIX) finished at 20.09 as trading volume climbed to roughly 20.6 billion shares, exceeding the recent average. Netflix shares declined 0.8% ahead of its earnings report after the bell. 1
After Monday’s closure for Martin Luther King Jr. Day, the market finally got its first move, with the S&P 500 slipping 0.7% for the year and the Nasdaq down 1.2%. The Dow, however, managed to maintain a 0.9% gain, per the Associated Press. Adding to the unease, renewed tariff threats stirred inflation concerns, complicating the Fed’s outlook just as investors were trying to nail down expectations for interest rates. 2
Traders are feeling the squeeze from a tangled mix. Politics is shaking markets just as earnings season ramps up across sectors, while the calendar loads with data that can send yields swinging quickly.
Trump announced on Truth Social that starting Feb. 1, targeted countries will face 10% tariffs, jumping to 25% on June 1 “until” the U.S. secures a deal to buy Greenland. Treasury yields climbed, with the 10-year yield hitting roughly 4.29% late in the session, up about seven basis points—a basis point being 0.01 percentage point. Meanwhile, gold and silver futures surged to record highs above $4,760 and $95.75 an ounce. The so-called Magnificent Seven tech giants were among the biggest losers. 3
Stephen Innes, managing partner at SPI Asset Management, said the trade rift “caught markets off guard” since it wasn’t factored into expectations. Bank Muamalat Malaysia’s chief economist Mohd Afzanizam Abdul Rashid pointed to a drop in long-term Japanese government bond prices as another sign of strain in global rates. At the same time, the dollar index slipped, while spot gold climbed to about $4,724 an ounce. 4
After hours, investors will dissect Netflix’s earnings and forecasts for clues on consumer demand and advertising trends. While this won’t resolve the tariff issue, it could influence risk appetite going into the next session.
The risk is clear-cut: tariffs shift from threat to reality, triggering retaliation and fueling inflation and rate worries. U.S. Commerce Secretary Howard Lutnick cautioned in Davos that if the European Union fights back, “then we’ll be back to tit-for-tat” escalation. Still, he expects the dispute to conclude in a “reasonable manner.” 5
Thursday brings another crucial data release. At 8:30 a.m. ET, the Bureau of Economic Analysis will update its third-quarter 2025 GDP estimate and provide revised corporate profits. Then, at 10:00 a.m., delayed figures for personal income and outlays for October and November will drop, including the PCE price index—the Fed’s go-to inflation measure. 6
