Trump’s Threats Over Greenland Send Stock Markets Diving

Jessica Mendoza (0:00)

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Alex Ossola (0:23)

President Trump's threats around Greenland rattle European leaders and US markets.

Bradley Olson (0:28)

This reintroduces the possibility that the president could levy tariffs against any country, any way, at any time, and I think that has spooked a lot of investors.

Alex Ossola (0:39)

Plus, a new AI coding tool is making developers excited, but also nervous. And Netflix says that revenue and profit grew in its latest quarter as subscriptions topped 325 million. It's Tuesday, January 20th. I'm Alex Ossola for The Wall Street Journal. This is the PM edition of What's News, the top headlines and business stories that move the world today. President Trump's threat of tariffs on European allies as part of his effort to get his way over Greenland is causing strong reactions from European leaders. At the World Economic Forum in Davos, Switzerland, Ursula von der Leyen, the president of the European Commission, said today that Greenland's sovereignty was quote, non-negotiable.

Ursula von der Leyen (1:24)

First principle, full solidarity with Greenland and the Kingdom of Denmark, the sovereignty and integrity of that territory is non-negotiable.

Alex Ossola (1:35)

She warned of a quote, dangerous downward spiral in the transatlantic partnership. Meanwhile, Greenland's prime minister said that the island must be ready for the US to resort to military force. And one of Germany's highest ranking military officers warned that the rift between the US and Europe is making NATO vulnerable to a Russian attack. The rift could also come with economic consequences. If President Trump does implement the tariffs, some $100 billion worth of American exports, like Boeing planes and bourbon whiskey, could get caught in the crossfire if the EU retaliates. EU officials say they are prioritizing dialogue with the Trump administration to avoid escalating the situation. Speaking at the White House this afternoon, President Trump didn't back off his desire to acquire Greenland. He expressed confidence that he could reach a deal, saying that he has a lot of meetings scheduled in Davos on Greenland and quote, I think things are going to work out pretty well. Also in that press conference, How far are you willing to go to acquire Greenland?

Bradley Olson (2:33)

You'll find out.

Alex Ossola (2:34)

President Trump is expected to head soon to Davos, where he's scheduled to speak tomorrow. Trump's comments roiled US markets. Major indexes fell sharply, with the NASDAQ tumbling 2.4%, the S&P dropping 2.1% and the Dow losing 1.8%. The S&P is now down 0.7% year-to-date, the first time in 2026 that the index is down for the year. And silver and gold futures hit new records as investors sought safe haven trades. WSJ Markets reporter Hannah Aaron-Lange says, we've seen this before.

Bradley Olson (3:06)

Basically what we're seeing is a smaller scale version of the dynamic that we saw take place last April when Trump initially unveiled his first round of tariff plans. We're seeing that kind of sell America trade dynamic take shape a little bit again today. It almost feels like tariffs is kind of a trigger word on Wall Street, as one of my sources put it to me today. This recent development with Trump and his rhetoric about Greenland and fresh tariff threats against European trading partners reintroduces the possibility that the president could levy tariffs against any country, anyway, at any time.

And this has just sparked some renewed trade war fears on Wall Street and unsettled folks about what could lie ahead in 2026

Alex Ossola (3:54)

In other news, foreign leaders are responding with caution to an invitation to join President Trump's Board of Peace. While the group was established by Trump to support the reconstruction of Gaza, it now has a broader mission to mediate global conflicts. And in remarks at the White House this afternoon, the president cast the Board of Peace as an alternative to the United Nations. It would carry a $1 billion fee for governments with a permanent seat as members. Around 60 governments have received invitations to join the board. And while the leaders of nations including Belarus, Hungary, and Morocco have said they'll join, some, such as the United Kingdom and Russia, are still deliberating. Others, like France, plan to decline. Coming up, Silicon Valley gets Claude-pilled. And do supersized CEO pay packages guarantee super results? That's after the break.

Christopher Mims (4:49)

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Christopher Mims (4:52)

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