Stocks and the dollar fell after President Donald Trump threatened tariffs on several European countries ahead of high-level meetings in Davos amid a growing standoff over his ambitions to seize Greenland. Bitcoin plunged. Gold hit record highs.

Renewed tensions drove the S&P 500 down 2.1%, erasing its 2026 gain. An indicator of stock volatility jumped to its highest level since November, reaching 20.29. Long-term US yields hit a four-month high, and investors also reacted to a drop in Japanese bonds and news that a Danish pension fund is planning to exit Treasury bonds. The dollar slipped against most major currencies.