Jan. 20 (UPI) — The Dow Jones Industrial Average fell more than 870 points, while the S&P 500 and Nasdaq Composite each fell by more than 2%, amid global trade tensions on Tuesday.
The Dow closed down 870.73 and 1.76% at 48,488.59, the S&P 500 fell 143.15 and 2.06% to 6,796.86 and the Nasdaq Composite dropped by 561.06 and 2.39% to 22,954.32 at the close of trading on Tuesday.
The decline is the worst since October and comes on the heels of President Donald Trump threatening to impose tariffs on European nations that oppose his proposal to make Greenland a U.S. territory.
He said eight NATO states could be hit with tariffs of between 10% and 25% if they continue to oppose the proposed U.S. annexation of Greenland for national security purposes.
Trump says Greenland is especially important for the planned Golden Dome aerial defense system that would protect against missile attacks from potentially hostile nations.
The resulting trade volatility spurred investors to rework their respective stock holdings as the Chicago Board Options Exchange’s “fear index” showed a 27% increase, the dollar declined in value by 1% and Treasury bond prices fell as well, according to The Washington Post.
Trump also has called the British government’s planned divestiture of the Chagos Archipelago in the middle of the Indian Ocean an “act of great stupidity.”
He said it would undermine national security for the United Kingdom, the United States and NATO members and is an example of why the U.S. acquisition of Greenland is necessary.