Dow Futures indicate a downward trend as traders assess the probability of the U.S. imposing new tariffs on several European nations concerning Greenland. President Donald Trump has announced plans to convene discussions regarding Greenland during his attendance at an annual economic forum in Switzerland, as European leaders contemplate their possible reactions to Trump’s assertion of American ownership of the territory. In the United States, the Supreme Court may soon announce its decision regarding the legality of the tariffs imposed by Trump. Elsewhere, the latest results are set to be reported.

Dow futures exhibited a downward trend on Tuesday, indicating a potentially unfavorable commencement to a truncated trading week, driven by escalating tensions concerning Greenland. By 03:07, the Dow futures contract had declined by 677 points, representing a decrease of 1.4%, while another futures contract had decreased by 102 points, or 1.5%, and a third had dropped by 449 points, equating to a 1.8% decline. The primary indices were closed on Monday in observance of Martin Luther King Jr. Day. Day. Nonetheless, the implications of President Donald Trump’s warning to impose new tariffs on various European nations until the U.S. is granted ownership of Greenland influenced global sentiment. Globally, stock markets have experienced a decline at the start of the trading week, indicative of concerns regarding the potential consequences of the levies. Trump has indicated that these will commence at 10% and may escalate to as high as 25% in June should his demands regarding the semi-autonomous Danish territory remain unaddressed. Analysts have projected that, if enacted and maintained over an extended duration, the tariffs could impose a cost on the Eurozone currency area of “something between” 0.2% and 0.5% of gross domestic product, with traditional European powerhouse Germany facing significant impact. “In practice, however, we are skeptical that they will be executed as promised. The analysts noted that the European Union is likely to exercise caution in any retaliatory measures to prevent further escalation.

Trump indicated that he would engage in discussions regarding Greenland during his attendance at the World Economic Forum’s annual gathering in Davos, Switzerland this week. On social media, Trump stated that he had a “very good” call with North Atlantic Treaty Organization head Mark Rutte, who has consistently endeavored to maintain the president’s support for the enduring alliance. The president is scheduled to address the annual Alpine conference of business executives and global leaders on Wednesday. He also indicated that he would engage with “various parties” during the trip, though he did not clarify the identities of those he intends to meet. “As I have articulated to all, quite clearly, Greenland is crucial for both National and Global Security. There can be no going back — On that, there is a consensus!” Trump wrote. European nations are currently engaged in discussions regarding their optimal response to the Greenland crisis, considering the implementation of significant tariffs on 93 billion euros worth of goods from the United States. France and Germany have urged the EU to contemplate the establishment of an instrument aimed at deterring economic coercion, potentially encompassing additional restrictions on investment or banking activities. Access for the U.S. to the EU, which ranks as the world’s third-largest economy, could face limitations due to this mechanism. This has been perceived as a “bazooka” option for the EU, resulting in a significant divide between the bloc and the U.S. following their trade agreement reached last summer. The future of NATO is precariously poised at this juncture.

A pivotal and anticipated Supreme Court ruling on the legality of Trump’s extensive import tariffs on numerous countries looms in the background. Trump has invoked a 1977 statute known as the International Emergency Economic Powers Act, or IEEPA, to substantiate the imposition of the levies. The International Emergency Economic Powers Act grants the president extensive authority regarding international economic transactions during a national emergency. However, justices conveyed considerable skepticism regarding the White House’s arguments during hearings late last year, leading markets to broadly anticipate that the high court will rule against Trump. Reports indicates that the decision could be announced as early as Tuesday. U.S. Trade Representative Jamieson Greer conveyed to the New York Times in a recent interview that, should the Supreme Court invalidate the tariffs, administration officials are already strategizing new duties that would be implemented immediately.

Gold prices reached a new record high on Tuesday, driven by concerns surrounding American demands for Greenland, which kept traders largely risk-averse and focused on safe havens. The prices for gold and silver reached unprecedented highs earlier this week in response to Trump’s latest tariff measures. Despite experiencing some profit-taking on Tuesday, silver maintained a relatively strong demand in the bullion market. The prevailing uncertainty prompted traders to divest from the U.S. dollar, subsequently contributing to an increase in metal prices. Spot gold increased by 1.0% to $4,724.83 per ounce, whereas gold futures advanced by 3.0% to $4,730.50 per ounce as of 03:49.

Netflix is scheduled to announce its most recent quarterly earnings following the market close on this Tuesday. Estimates indicate that the streaming video giant is projected to report earnings per share of $0.55 alongside revenue of $11.96 billion. However, the figures will probably be overshadowed by any conversation regarding Netflix’s ambition to acquire the established Hollywood entity Warner Bros. Discovery faces competition from a bid made by Paramount Skydance. The contest for Warner Bros is expected to extend over several months and may become entangled in regulatory examination in both the United States and Europe. Netflix has set its sights on Warner Bros, which encompasses the HBO Max streaming division and well-known franchises such as “Harry Potter” and “Friends”, in an effort to enhance its revenue streams. Despite the support garnered from the success of series such as “Stranger Things” and an entry into live sports programming, Netflix encounters pressure to demonstrate returns from its costly investments in advertising and video games.