New York, January 21, 2026, 10:47 EST
- Wall Street found its footing on Wednesday following Tuesday’s steep drop sparked by Trump’s tariff threat over Greenland
- NetApp, Dell and Norwegian Cruise Line drove sharp declines in the S&P 500 during the previous session
- After the indexes dropped below crucial technical thresholds, traders are focusing on tariffs, yields, and earnings
Wall Street clawed back some ground Wednesday following its steepest single-day drop in three months, as investors parsed President Donald Trump’s comments on Greenland and trade at Davos. By 9:38 a.m. ET, the Dow was up 0.42%, the S&P 500 had gained 0.40%, and the Nasdaq ticked 0.20% higher. Netflix, however, fell 4.2% after halting share buybacks to help finance its acquisition of Warner Bros Discovery’s studio and streaming units. “But we’re certainly concerned about reigniting a trade war,” said Art Hogan, chief market strategist at B Riley Wealth. Reuters
This move matters as tariff chatter takes center stage again, no longer buried in the footnotes. Traders are scrambling to figure out if Tuesday’s sell-off was just a blip or the beginning of a more persistent trend, especially with rates climbing and earnings season heating up.
All three major U.S. indexes took a steep hit Tuesday as investors digested Trump’s warning of new tariffs on European allies if the U.S. isn’t allowed to purchase Greenland, Denmark’s autonomous territory. The S&P 500 plunged 2.06% to 6,796.86, the Nasdaq Composite dropped 2.39% to 22,954.32, and the Dow fell 1.76% to 48,488.59. Volatility surged, with both the S&P 500 and Nasdaq slipping below their 50-day moving averages — a key technical level for chart watchers. “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. He added he’d be surprised to see a 3% to 5% decline this week. Reuters
MarketWatch reported widespread selling, with roughly 80% of S&P 500 stocks closing down and every one of the 11 sectors in negative territory. The 10-year Treasury yield climbed about 7 basis points — each basis point equals 0.01 percentage point — settling at 4.30%.
NetApp led the losers, sliding 9.35%, followed by Dell Technologies, which dropped 7.85%, and Norwegian Cruise Line Holdings, down 7.43%, according to an Investing.com market wrap. 3M lost 6.96%, while Nvidia declined 4.38% in the same report.
Broker XTB reported that Nasdaq 100 futures, tagged “US100” on many platforms, slid roughly 0.7%. The drop came as traders fretted over a possible 10% tariff hike on European goods set for Feb. 1, with a 25% increase looming on June 1 if talks on Greenland break down further. XTB also noted technical headwinds: the index dipped below its 50-day exponential moving average, a key trend indicator, while MACD and RSI momentum readings pointed to ongoing selling pressure. XTB.com
Portfolio manager Lawrence Fuller noted on Seeking Alpha that the recent slide mirrors April’s “Liberation Day” market shock. He pointed to tariff threats and geopolitical tensions wiping out year-to-date gains for major indexes. “I view the broad opposition to Greenland annexation as reducing escalation risk,” Fuller wrote. He suggested the current weakness might be a buying opportunity if growth remains steady and long-term yields stay under control. Seeking Alpha
Part of the immediate concern is mechanical: how yields settle and if stocks can retake those 50-day moving averages. Another angle is political: will Washington and Europe back off or escalate their stances?
The downside scenario is straightforward. Should tariffs shift from mere threats to actual policy, and Europe retaliates—particularly with measures aimed at U.S. tech—the market could swiftly revise earnings estimates. Rising bond yields would only amplify that adjustment.
