Stock futures inch higher after S&P 500, Dow Jones log worst day since October 2025 — What to know

Stock futures saw a slight upward movement on Tuesday night after major averages in the US clocked their worst day in three months.

The futures related to the Dow Jones Industrial Average ticked upwards by 85 points, or nearly 0.2%. Meanwhile, S&P 500 futures advanced around 0.2% as well, and Nasdaq 100 futures climbed 0.1%.

On Tuesday, US equities saw a meltdown, posting sharp losses across sectors, as President Donald Trump refused to back down on his tariff threats to EU countries over Greenland ahead of his scheduled appearance at Davos on Wednesday.

The renewed tensions drove the S&P 500 down 2.1%, erasing its 2026 gain and seeing its biggest drop since October. Technology stocks were the biggest weights. The Dow Jones Industrial Average dropped 1.8%. The Nasdaq composite slumped 2.4%.

All the three benchmark indices posted their worst performance since 10 October, 2025. The unprecedented selloff also dragged S&P 500 and Nasdaq to their negative territories for 2026.

The so-called sell America trade on Tuesday also saw long-term US yields hit a four-month high. The yield on 10-year Treasuries climbed six basis points to 4.28%. Meanwhile, the dollar fell.

Why are US stocks falling?

The fall in the US stock markets shows that investors’ previous willingness to shrug off Trump’s actions — including the White House’s capture of Venezuela’s leader, its threats to nearby countries, and renewed attacks on the Federal Reserve — is beginning to erode.

Trump’s demand for US control over Greenland is stoking investor anxieties about potential worst-case scenarios, including a rupture in the NATO alliance, a full-blown trade war, or European steps to foment market turbulence as a way to force the Trump administration to back down.

Volatility across US bonds, equities and the dollar over the past month had sunk to the lowest since at least 1990, according to Bloomberg.

Trump has been threatening EU countries with 10% tariffs from 1 February if they did not agree on Greenland, and proposed a 200% duty on French wine imports over its President Emmanuel Macron's disinterest to join his Gaza Peace Board.

French President Emmanuel Macron this week called for an emergency meeting in Paris with European leaders to address tensions with the US over President Donald Trump's pursuit to acquire Greenland as well as tariffs.

Trump told reporters that he would not attend the meeting, in part because Macron would not be leading his country for much longer.

The president was appearing at Tuesday's White House press briefing to mark the first anniversary of the start of his second term.