Traders work on the floor of the New York Stock Exchange (NYSE) in New York, US, on Monday, Sept. 22, 2025. Wall Street traders left stocks hovering near all-time highs amid calls for a break after a $15 trillion rally from April lows, with traders awaiting a handful of Federal Reserve speakers and a key inflation measure. Photographer: Michael Nagle/Bloomberg
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CNBC TV1821-01-2026, 02:42

Dow Plunges 870 Points, S&P 500 Drops 2% on Trump's Greenland Tariff Threat

  • US stock markets experienced significant losses on Tuesday, with the Dow Jones Industrial Average shedding 870 points (1.8%).
  • The S&P 500 dipped 2.1% and the Nasdaq Composite slid 2.4%, marking the worst day for the S&P 500 since October.
  • The market downturn was triggered by President Donald Trump's intensified rhetoric on Greenland, threatening tariffs on countries opposing its sale to the US.
  • US Treasury yields spiked and the US dollar declined as investors moved away from US assets.
  • The Cboe Volatility Index (VIX), known as Wall Street's "fear gauge," surged to 20.69, a level not seen since November 25.

Why It Matters: US stocks plummeted due to Trump's Greenland tariff threat, causing investor flight from US assets.

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