US Stock Markets Experience Sharp Decline Amid Tariff Announcement

On January 20, 2026, US stock markets registered notable declines following a government announcement regarding tariffs linked to negotiations over Greenland. The development affected several major indices and triggered volatility across global markets.

The S&P 500 index decreased by about 143 points, or 2.1%, marking its steepest single-day fall since October. The Dow Jones Industrial Average also declined, dropping roughly 870 points, which equated to a 1.8% loss. The Nasdaq Composite experienced a similar trend, falling by approximately 561 points, or 2.4%, as investors responded to the new trade measures and geopolitical uncertainty.

President Trump announced that tariffs of 10% on imports from eight European countries would begin in February, with rates scheduled to increase to 25% by mid-year unless those countries agreed to enter negotiations regarding Greenland. This announcement contributed to broad sell-offs across multiple US sectors, including technology, retail, financial, and industrial stocks.

Market volatility increased significantly, as reflected by the CBOE Volatility Index (VIX), which rose by about 27% to reach a level of 20.14. Investors shifted assets into gold, causing its price to reach record highs during the trading session.

What the numbers show

• S&P 500 fell approximately 143 points, or 2.1%, on January 20, 2026
• Dow Jones dropped around 870 points, or 1.8%, the same day
• Nasdaq Composite declined by about 561 points, or 2.4%
• CBOE Volatility Index increased by roughly 27% to 20.14
• Tariffs announced to start at 10% and rise to 25% by mid-year

Asian markets responded to the US sell-off and geopolitical developments, with Japan’s Nikkei 225 index decreasing by about 0.4% and the TOPIX index dropping nearly 0.9% on Wednesday. The declines in Asia reflected ongoing concerns about the impact of the US tariff policy and the associated uncertainty.

Gold prices moved sharply higher as investors sought safe-haven assets amid the market turmoil. The increase in gold prices coincided with the heightened volatility in equity markets and the broader sell-off across US sectors.

Later on Wednesday, S&P 500 futures recorded a modest gain of approximately 0.3%. This movement occurred as investors turned their attention to upcoming earnings reports, following the earlier market declines.

The announcement of tariffs and the related tensions over Greenland prompted widespread selling in US equities. The effects were observed across several industries, with technology, retail, financial, and industrial stocks experiencing some of the largest declines during the session.

* This article is based on publicly available information at the time of writing.