U.S. stocks traded lower on Tuesday as investors reacted to renewed trade-war rhetoric from President Donald Trump, who warned of rising tariffs against key European partners blocking a U.S. bid to gain control of Greenland. The comments rattled sentiment after a volatile start to the year and pushed traders back into a cautious stance.
Futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all drifted modestly lower, signaling a weaker open as investors weighed geopolitical risks against an otherwise solid earnings backdrop. Tech stocks led premarket declines, reflecting sensitivity to both trade uncertainty and rising global bond yields.
Market Movers:
- Rapt Therapeutics (RAPT) +64%: Shares surged after GSK agreed to acquire the biotech company in a $2.2 billion deal, offering $58 per share in cash through a tender offer expected to launch within 10 business days. The acquisition gives GSK global rights outside Greater China to Rapt’s phase IIb long-acting anti-IgE antibody for food-allergy prevention.
- ImmunityBio (IBRX) +30%: The stock jumped after the company reported a productive Type B end-of-phase meeting with the FDA regarding its supplemental BLA for ANKTIVA plus BCG in papillary NMIBC. Management said regulators requested additional information but no new trials, clearing a potential path toward resubmission.
- Bakkt (BKKT) -9%: Shares slid after preliminary fourth-quarter results showed razor-thin margins, continued cash burn, and multiple restructuring-related expenses. Investors were unsettled by minimal profitability, low cash reserves, and ongoing litigation tied to the company’s Loyalty Business divestiture.
- NetApp (NTAP) -6%: The stock fell after Morgan Stanley downgraded the name, warning of a prolonged downturn in IT hardware spending. The firm cited slowing corporate budgets and rising component costs as pressures likely to persist for several quarters.
- Logitech (LOGI) -4%: Shares declined following a downgrade from Morgan Stanley, which flagged weakening demand for peripherals amid a sharp slowdown in PC and enterprise spending. Analysts said pricing pressures and reduced refresh cycles are weighing on near-term growth.
- CDW (CDW) -3%: The stock slipped after Morgan Stanley cut its rating, citing CIO survey data pointing to the weakest corporate IT spending environment in 15 years outside of the pandemic. Resellers expect significant budget cuts across PCs, servers, and storage.
- 3M (MMM) -4%: Shares dropped after the company issued a 2026 earnings outlook that narrowly missed consensus estimates, overshadowing a fourth-quarter beat. The guidance raised concerns about whether momentum from its turnaround efforts can be sustained in a choppy macro environment.
- NVIDIA (NVDA) -3%: The stock declined after reports that Chinese customs officials blocked shipments of the company’s H200 AI processors, prompting suppliers to halt production. The move reignited concerns over regulatory risk in China, a key growth market for Nvidia’s data-center chips.
Trade Tensions Reignite Risk-Off Mood
Markets grew increasingly uneasy after Trump warned of new tariffs against European nations resisting U.S. efforts to assert control over Greenland. European officials signaled a firm response, raising the risk of retaliation and escalating trade tensions just as earnings season accelerates. The renewed rhetoric comes at a fragile moment for global markets, already grappling with elevated interest rates and slowing growth in key regions.
Bonds, Tech, and Commodities Reflect Unease
A global bond sell-off added pressure to equities, pushing yields higher and weighing particularly on high-valuation technology stocks. Investors rotated out of AI-linked names, reflecting concerns that geopolitical disruptions could exacerbate existing valuation sensitivities. Meanwhile, safe-haven assets remained in focus despite intraday volatility, as traders sought protection against policy uncertainty and geopolitical escalation.
Looking Ahead
Attention now turns to corporate earnings and upcoming geopolitical developments, including Trump’s expected meetings with world leaders later this week. Investors will also be watching bond markets closely for signs that rising yields could further pressure equity valuations. With trade tensions back in focus and volatility elevated, markets may remain choppy as traders balance earnings optimism against mounting geopolitical and policy risks.