It is often the case that U.S. equity index futures rally off the lows following a session when American investors were on holiday. The buy-the-dip mentality kicks in, particularly if the reason for the initial retreat is geopolitical.

US stock index futures plunge as Trump threatens 25% tariffs on Europe over Greenland. Nasdaq 100 erases 2026 gains, breaking key support levels.

Stock index futures sank as Wall Street returned to trading Tuesday as the standoff between the U.S. and Greenland continued to heat up. S&P futures (SXP) -1.6%, Nasdaq 100 futures (US100:IND) -1.8% and Dow futures (INDU) -1.

Follow along for live updates on the Dow, S&P 500, Nasdaq and other markets.

Markets do not seem to like the geopolitical developments surrounding Greenland. European equity markets traded lower and U.S. stock futures were following their lead. The drop in futures pointed to a lower open for U.

US stocks opened sharply lower and stocks in Europe fell Tuesday as investors continued to express concern about President Donald Trump’s clash with European leaders over ownership of Greenland. A snap election in Japan also rattled markets in Asia,

Stock futures saw a slight upward movement on Tuesday night after major averages in the US clocked their worst day in three months.

BANGKOK (AP) — European shares mostly fell and U.S. stock futures skidded Monday after U.S. President Donald Trump threatened to slap a 10% extra tariff on imports from eight European countries because they oppose having America take control of Greenland.

Dow Jones futures fall by 1.25% to near 48,900 during the European session on Tuesday, while S&P 500 and Nasdaq 100 futures decline 1.34% and 1.56% to below 6,900 and 25,300, respectively.

"As such, the more likely outcome, in our view, is that both sides recognize that a major escalation would be a lose-lose proposition, and that compromise eventually prevails."