FX.co ★ US Futures Stabilize After Market Selloff

On Wednesday, the US stock futures stabilized following a significant decline in major averages the previous day, driven by increased tensions between Washington and Europe regarding President Donald Trump’s controversial interest in acquiring Greenland. Over the weekend, President Trump suggested imposing additional tariffs on eight European nations that opposed the plan unless an agreement is achieved. Discussions regarding Greenland are on the agenda as Trump is set to meet with various stakeholders at the World Economic Forum in Davos on Wednesday. During regular trading on Tuesday, the Dow Jones Industrial Average suffered a 1.76% loss, the S&P 500 decreased by 2.06%, and the Nasdaq Composite tumbled 2.39%, marking the steepest daily declines for all three indices since October 10. Moreover, US Treasury yields rose while the dollar weakened, indicating declining confidence in US financial assets amidst concerns that Europe’s significant holdings of US bonds and stocks could be utilized in countermeasures. Additionally, Netflix saw its shares fall nearly 5% in after-hours trading, despite narrowly surpassing its Q4 earnings expectations.