NEW YORK, January 20, 2026, 09:45 ET — Market open for regular trading.
- Amazon shares dipped in early trading as investors retreated from megacap tech stocks
- Markets turned risk-off after Trump revived tariff threats against Europe
- Attention shifts to the fallout from policy moves and Amazon’s upcoming earnings release
Shares of Amazon.com, Inc. (AMZN.O) dropped 2.2% to $233.84 in early Tuesday trading, hitting a low of $231.14 amid renewed tariff concerns rattling big tech stocks.
The drop hit as U.S. markets reopened following Monday’s holiday, rattled by fresh trade threats from President Donald Trump over Greenland. Investors were bracing for a tough start. “We’re getting the weakness because the headlines are going to drive angst,” said David Lundgren, chief market strategist at Little Harbor Advisors. 1
That caution pushed investors toward havens overnight, boosting gold and similar assets as concerns grew over a potential broader U.S.-Europe trade dispute. “It’s highly likely that the White House will use the threat of tariffs consistently,” said George Lagarias, chief economist at Forvis Mazars. 2
Attention is turning to Europe’s next move, as EU leaders prepare to meet in Brussels on Thursday for an emergency summit. They’ll consider options that might go beyond just goods trade. Amelie Derambure, senior multi-asset portfolio manager at Amundi, described the market dip as “precautionary profit-taking,” adding, “there is no panic.” 3
Amazon faces pressure not from any single company event but rather from how traders treat it—as a key, liquid proxy for U.S. growth and global commerce whenever risk appetite shifts.
Tariff debates often hit retailers with complex supply chains hard, yet the ripple effects can reach corporate operations too. Amazon’s cloud division, which offers computing power and storage, faces scrutiny when investors start doubting growth. That’s when tech budgets and major contracts turn into key trading concerns.
Shares of major U.S. tech giants dropped sharply ahead of Wall Street’s open. Alphabet’s Frankfurt-listed stock slid 2.4%, while Nvidia and Microsoft each fell 2.2% in European trading on Monday. 4
Traders are closely monitoring if the tariff threat drives up import costs, intensifying the inflation debate. Should interest rates or bond yields spike amid these concerns, high-valuation tech stocks could suffer as investors seek greater returns for future earnings.
Tariff threats have flared and then faded before, with megacap tech often bouncing back swiftly once headlines lose steam or earnings regain focus. The bigger risk now: escalation, retaliation, and another wave of forced de-risking that keeps the heat on the biggest players.
Amazon’s next big event is its quarterly earnings report, set for Feb. 5 after the U.S. market closes, per Yahoo Finance’s earnings calendar. Traders will be watching closely for changes in AWS demand and margin patterns, particularly as trade tensions and policy uncertainties resurface. 5
