U.S. stocks, dollar and Treasuries fall after Trump escalates Greenland dispute

U.S. stocks, the dollar and government bonds all fell Tuesday morning as investors reacted to President Trump’s intensifying standoff with European leaders over the fate of Greenland.

The S&P 500 dropped over 1 percent, its biggest morning decline since April when Mr. Trump first announced sweeping tariffs. Both the dollar and U.S. government debt lost value as investors embraced what the report described as a "sell America" trade. The dollar index fell 0.8 percent and weakened against every currency in a group of 10 nations, including the euro, British pound and Norwegian krone. The yield on the 10-year U.S. government note rose 0.1 percentage points to 4.3 percent, a move that undercut the administration’s efforts to move interest rates lower; that yield serves as a key rate underpinning consumer and corporate borrowing.

Tuesday’s trading was the first market reaction to Mr. Trump’s escalating weekend threats because U.S. markets were closed on Monday for Martin Luther King’s Birthday. One exception in the market was defense stocks: Northrop Grumman nudged higher and pushed further into record territory after rising almost 20 percent already this month.

Key Topics

Business, Donald Trump, Greenland, U.s. Dollar, Northrop Grumman