Futures for U.S. technology indices are facing downward pressure as the market prepares to open, largely due to worries stemming from President Donald Trump’s unsuccessful attempts to acquire Greenland and the looming threat of reciprocal tariffs between the United States and several European nations.
The Invesco QQQ Trust Series, an ETF that mirrors the tech-heavy Nasdaq 100 index, has dropped by 2% in pre-market trading following a long weekend commemorating Martin Luther King Jr. Day on Monday.
Trump has signaled his willingness to impose a new 10% tariff on Denmark along with some other European countries, which are reportedly considering retaliatory taxes on imports from the U.S. Prediction markets indicate a slim chance of any resolution, with Polymarket estimating only a 20% likelihood that Trump will successfully acquire Greenland before 2027.
On Tuesday, Bitcoin plummeted to $90,000—an 8% decline from its peak last Thursday—leading to declines in cryptocurrency-related stocks. MicroStrategy (MSTR) fell by 6%, now priced at $164; Galaxy Digital (GLXY) decreased by 8%, settling at $32; and IREN (IREN) also saw an 8% drop down to $53.
Both Coinbase (COIN) and Circle Internet (CRCL) experienced approximately a 5% decline as broader weakness in technology stocks continues; all Magnificent Seven companies have seen their stock prices decrease between 1%-3%.
In contrast, gold—a traditional safe haven during turbulent times—and silver have both shown upward trends. Gold is currently trading above $4,700 per ounce with a year-to-date increase of about 9%, while silver has surpassed $95 per ounce after gaining approximately 32% over the same timeframe.
The yields on U.S. Treasury bonds have risen while Japanese long-term bonds remain under considerable strain. Yields for Japan’s three-decade government bonds—which rise when bond prices fall—have surged close to nearly four percent, highlighting significant stress within global bond markets.
The DXY index—a crucial measure of dollar strength against various major currencies—has declined by half a percent down to stand at around98.5
UPDATE (Jan.20 ,10:33 UTC): Adds dropped letter in headline