4:15pm: Tech rotation rocks markets
Wall Street took a beating on Tuesday, posting their worst session since October as worries over President Trump's renewed trade ambitions in Greenland sent investors scrambling.
The Dow Jones Industrial Average dropped 871 points, or 1.8%, to 48,489, while the S&P 500 slipped 2.1% to 6,797. The Nasdaq fared even worse, plunging 2.4% to 22,954. The Russell 2000, meanwhile, fell 1.2% to 2,645.
Tuesday’s declines wiped out all of the year-to-date gains for both the Nasdaq and the S&P 500, marking a sobering reminder of how quickly markets can turn.
Treasury yields hit four-month highs amid a sell-off in Japanese bonds, adding pressure to U.S. debt. The dollar slid to a two-week low as the so-called “Sell America” trade returned, while haven assets like gold and silver climbed to fresh records.
Big tech stocks led the retreat, with Nvidia and Broadcom among the hardest hit. Analysts say the rotation out of AI-linked names reflects ongoing worries about an overheated tech market.
Investors now face heightened uncertainty as tariff fears, rising yields, and geopolitical risks collide.
3:45pm: Proactive news headlines
- G Mining Ventures Corp (TSX:GMIN, OTCQX:GMINF, FRA:W97) released 2026–2027 guidance for its Tocantinzinho gold mine in Brazil and provided development updates for its Oko West project in Guyana.
- Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) reported promising preliminary metallurgical results from flotation testing of mineralized material at its Lion zone within the Nisk polymetallic project in Quebec.
- Medicus Pharma (NASDAQ:MDCX) marked its one-year Nasdaq anniversary while advancing novel therapeutics for basal cell carcinoma and advanced prostate cancer.
- American Resources Corp (NASDAQ:AREC) subsidiary ReElement Technologies achieved ultra-high-purity samarium production, supporting demand for samarium-cobalt magnet-grade materials for commercial and defense uses.
- Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF, FRA:P9J) confirmed significant gold-silver mineralization in the Estrella vein of its El Potrero project through surface and underground sampling.
- Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF, FRA:3XS0) fully eliminated $15 million in outstanding debt to Nebari Natural Resources through repayments and equity conversions.
- Digi Power X Inc (NASDAQ:DGXX, FRA:1NQ0, TSX-V:DGX) began deploying its modular ARMS 200 AI infrastructure platform in select U.S. Tier III data centres to support power-intensive AI workloads.
- Midnight Sun Mining Corp (TSX-V:MMA, OTCQB:MDNGF) completed a maiden resource estimate for its Kazhiba Main oxide copper deposit in Zambia, outlining 2.33 million tonnes at 1.41% copper.
2:40pm: Market movers
- 3M Co (NYSE:MMM) reported fourth-quarter earnings and revenue that beat expectations, with margins expanding year-on-year, but shares fell more than 7% as investors reacted to relatively modest fiscal 2026 guidance.
- Fastenal Co (NASDAQ:FAST) shares slid nearly 4% after the industrial distributor posted fourth-quarter earnings in line with forecasts but slightly missed revenue expectations.
- G Mining Ventures Corp (TSX:GMIN, OTCQX:GMINF, FRA:W97) released 2026–2027 production guidance for its Tocantinzinho gold mine in Brazil and updated progress at its Oko West gold project in Guyana, highlighting continued execution of its growth strategy.
- Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) reported encouraging preliminary metallurgical results from its Lion zone at the Nisk polymetallic project in Quebec, based on early flotation test work by SGS Canada.
1:40pm: Netflix to report after the bell
Netflix Inc (NASDAQ:NFLX, XETRA:NFC) shares head into tonight's earnings report under pressure after a weaker-than-expected third quarter and softer fourth quarter guidance, Wedbush analysts believe, noting that investors will be focused on whether advertising momentum and subscriber trends can reaccelerate growth.
The analysts believe that the recent share price decline reflects both execution questions and lingering uncertainty tied to a pending Warner Bros transaction. “Shares have been in decline since Netflix reported underwhelming Q3 results and Q4 guidance, after several quarters of phenomenal results, amid the overhang from the contentious pending WB acquisition,” the analysts wrote.
For the fourth quarter, Wedbush projected revenue of $11.96 billion, broadly in line with the consensus estimate of $11.97 billion, and earnings per share of $0.55, matching expectations.
The firm also estimates more than $9 billion in free cash flow for 2025, roughly in line with company guidance.
12:45pm: Netflix amends Warner Bros offer
Netflix Inc (NASDAQ:NFLX, XETRA:NFC) and Warner Bros. Discovery Inc (NASDAQ:WBD, XETRA:J5A) announced Tuesday that they have amended their definitive agreement for Netflix’s pending acquisition of Warner Bros. to an all-cash transaction, responding to competitive pressure from Paramount Skydance’s $30-per-share all-cash proposal.
The revised structure is intended to simplify the deal and provide greater certainty for Warner Bros. Discovery stockholders, while speeding the timeline toward shareholder approval.
The amended offer maintains the value of $27.75 per Warner Bros. Discovery share in cash, with stockholders also receiving shares of Discovery Global following its planned separation. The acquisition is structured to include Warner Bros.’ film and television studios, its library, and HBO Max, while spinning off cable assets such as CNN and TNT into the separate entity Discovery Global.
Warner Bros. Discovery said the revised structure should allow stockholders to vote on the transaction by April 2026.
11:50am: Markets remain uneasy despite Treasury Secretary comments
US markets continued to show volatility on Tuesday, with Treasury Secretary Scott Bessant attempting to ease fears by saying the market is overreacting, similar to past tariff concerns. While his remarks have slightly reduced risk aversion, they have not fully calmed investors.
“Overall, this is a manmade crisis, and the continued sell off on Tuesday suggests that US threats to Greenland and their effects on financial markets could have further to go if the situation does not deescalate soon,” said Kathleen Brooks, head of research at XTB.
11:00am: Rotation out of high-momentum names
US equity markets fell sharply on Tuesday as investors rotated out of high-momentum stocks, reflecting concerns over elevated valuations, geopolitical uncertainty, and the impact of midterm elections.
“We have anticipated a reversal out of high momentum stocks in January given current valuations, geopolitical and macroeconomic unknowns, tariff rate uncertainty, and a midterm election cycle, none of which bode particularly well for robust market gains,” said Eric Teal, Chief Investment Officer for Comerica Wealth Management in Charlotte, North Carolina, adding that investors should focus on “geographic and sector diversification and playing defense at this juncture.”
Teal noted that opportunities remain outside of large-cap technology, highlighting regional and mid-sized banks, quality small-cap companies, and defensive sectors such as consumer staples and healthcare, which may provide downside protection amid market volatility.
10:25am: Danish pension fund to exit US Treasuries
Danish pension fund AkademikerPension said it plans to exit its holdings of US Treasuries, citing concerns over the credit quality of the world’s largest debt market.
Chief Investment Officer [Name] described the U.S. as “basically not a good credit,” signaling a strategic shift in the fund’s fixed-income allocations.
AkademikerPension manages roughly $23–$25 billion, and analysts noted that even a full exit from U.S. Treasuries would have minimal impact on the market, which sees daily trading volumes exceeding $600 billion.
9.50am: Nasdaq opens 1.7% lower as Nvidia slides
US stocks have returned from the long weekend into a vortex of selling.
Tech stocks on the Nasdaq are in the eye of the storm, with the composite index down 1.7% as the likes of Nvidia fall 3.2%, Microsoft, Alphabet, Amazon and Tesla all drop more than 2%.
The S&P 500 has opened 1.4% lower, and the Dow Jones has dropped 1.3%.
Biggest fallers on the S&P are Super Micro Computer, Incyte and 3M, down 6.5%, 5.5% and 4.1%.
Top risers are Expand Energy, SanDisk, EQT, Western Digital and Newmont.
Only two companies on the Dow are not in red, Walmart and Procter & Gamble.
8am: Wall Street sell off to be led by Nasdaq
Investors are betting on Wall Street stocks starting the shortened week with some heavy selling, as US stocks catch up with the global equity rout sparked when Donald Trump threatened new tariffs for the European countries objecting to his plan to take control of Greenland.
With US stock and bond markets closed at the start of the week for the Martin Luther King day holiday, on Tuesday morning, Nasdaq futures were down 1.6%, with S&P 500 and Dow Jones futures down 1.4% and 1.3%.
President Trump on Saturday said he would hit eight European nations with 10% tariffs, rising to 25% later in the year, should negotiations over Greenland fail.
The US President will be attending events at the World Economic Forum in Davos on Wednesday, giving a speech and talking to fellow world leaders on the sidelines.
European leaders are pushing back against Washington’s stance and reportedly discussing countermeasures, including a potential first use of the EU’s Anti-Coercion Instrument.
Trump upped his rhetoric overnight, with calling the UK's plan to hand over sovereignty of the Chagos Islands to Mauritius an "act of great stupidity".
The US dollar index was down 0.9%, further retreating from Friday's six-week high, while Treasury yields are up as a bout of selling in global government bonds was sparked by Japan's snap election plan.
In corporate results season, Netflix, 3M and United Airlines are due to publish earnings today.
Netflix also announced that it is switching its $82.7 billion deal for Warner Bros Discovery to an all-cash deal at a price of $27.75 per share.
Netflix and WBD said the agreement "provides enhanced certainty" to shareholders by "eliminating market-based variability".
Market analyst David Morrison at Trade Nation said this morning marks "the first opportunity for investors to assess their exposure to individual US equities since Friday night".
He added: "While some on Wall Street argue any tariff-driven sell-off could be a buying opportunity as the earnings season picks up steam, the scale and breadth of Trump’s rhetoric have unsettled risk appetite."
Attention is also building around the potential Supreme Court ruling on the legality of the White House's tariffs, "which could inject further volatility into markets".