New York, Jan 21, 2026, 06:08 EST — Premarket
- After Wall Street’s sharpest fall in months, Dow futures climbed roughly 0.2%.
- Markets are reacting to President Donald Trump’s comments at Davos following new tariff threats on Europe linked to Greenland.
- U.S. housing data is set for Wednesday; Thursday brings GDP figures and weekly jobless claims, ahead of the Fed meeting next week.
Dow Jones Industrial Average futures edged up early Wednesday, hinting at a cautious rebound following the blue-chip index’s sharpest one-day decline in three months amid tariff jitters and a flight to safety. (AP News)
The Dow tumbled 870.74 points, or 1.76%, ending Tuesday at 48,488.59. The drop came after President Donald Trump threatened new tariffs on imports from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain if the U.S. doesn’t strike a deal to buy Greenland. The VIX, Wall Street’s volatility gauge, closed at its highest level since late November. Both the S&P 500 and Nasdaq slipped below their 50-day moving averages—key technical markers. “I’m not at the point yet where I’m willing to say … this is going to precipitate a correction,” said Jamie Cox, managing partner at Harris Financial Group. (Reuters)
Overseas, talk about the “Sell America” trade — a shorthand for trimming U.S. asset exposure — continued after a broad retreat in stocks, the dollar, and Treasuries. Mantas Vanagas, senior economist at Westpac, described investors as dialing back on the U.S. as an “unreliable partner.” Chris Weston, Pepperstone’s head of research, flagged the upcoming test: will dip buyers jump in, or will new developments push risk-taking lower again? The European Union plans an emergency summit in Brussels on Thursday. (Reuters)
Gold prices surged past $4,800 an ounce, pushing further into record highs as traders signaled growing caution. Jamie Dutta, a market analyst at Nemo.money, pointed to the “Greenland crisis” as a key factor. John Meyer of SP Angel is keeping an eye on gold’s potential to hit $5,000 an ounce, but he warned momentum could falter if ETF demand slows. Reuters also noted investors are closely watching a Supreme Court case involving Trump’s effort to oust Federal Reserve Governor Lisa Cook—a move seen as a crucial test of Fed independence. (Reuters)
The Dow’s blend of industrial and multinational firms leaves it particularly exposed to shifts in trade policy and any sudden blow to business confidence. Tariffs boost input costs, squeeze margins, and disrupt global supply chains — issues that don’t usually surface all at once but tend to persist over time.
Traders eye U.S. residential construction data at 8:30 a.m. ET, followed by the National Association of Realtors’ pending home sales index at 10:00 a.m. ET. Thursday rolls out the Bureau of Economic Analysis’ “GDP 3rd Release” alongside weekly initial jobless claims, both set for 8:30 a.m. ET. Personal income and the PCE deflator — the Fed’s preferred inflation measure — are scheduled for Jan. 29. (Federal Reserve Bank of New York)
The Federal Reserve’s upcoming policy meeting is set for Jan. 27-28. The decision will be announced at 2:00 p.m. ET on Jan. 28, with a press conference scheduled half an hour later at 2:30 p.m. ET. (Federal Reserve)
Netflix topped estimates on fourth-quarter revenue and earnings, yet its Frankfurt-listed shares dropped roughly 7%. The decline came after the company announced a pause on share buybacks to conserve cash during its bidding battle for Warner Bros Discovery. (Reuters)
The chances for a Dow rebound remain slim. Should tariff discussions move from vague threats to set schedules, or if long-term yields climb back near recent peaks, any relief rally might vanish fast, pulling the index’s cyclical stocks down along with it.
Investors are zeroing in on Trump’s Davos speech Wednesday for any hint of easing tensions—or the reverse. After that, attention shifts to Thursday morning’s housing data, GDP figures, and claims report, before the Fed’s Jan. 27-28 meeting takes center stage as the next big trigger for the Dow.
