All Three Major Futures Indexes Plunge
Market Shock Greater Than When Jerome Powell Was Subpoenaed
U.S. stock futures are falling across the board as President Donald Trump's ambitions to annex Greenland threaten to escalate into a trade war with the European Union (EU).
As of 8:25 p.m. local time on the 18th, Dow Jones 30 futures on the New York Stock Exchange were down 0.64% at 49,232.00. The S&P 500 futures index plunged 0.74% to 6,925.25, and Nasdaq 100 futures declined 0.95% to 25,444.75.
Last week, the Nasdaq 100 futures index dropped 0.68% when U.S. prosecutors issued a subpoena to Chairman Jerome Powell. The nearly 1% decline now is interpreted as the market taking the Greenland situation very seriously.
Previously, President Trump announced that he would impose an additional 10% tariff on eight European countries starting in February, and if there is no progress on the Greenland annexation issue, he would raise tariffs to 25% from June.
In response, the European Union is reviewing 160 trillion won worth of retaliatory tariffs, which major EU countries had prepared for trade negotiations with the U.S. last year. The EU is also considering invoking the Anti-Coercion Instrument (ACI), a measure that restricts trade in services, foreign direct investment, financial markets, public procurement, and intellectual property rights for third countries that economically threaten the EU or its member states. Since its introduction in 2023, the ACI has never been used.
The intensifying conflict between the U.S. and the EU is seen as having a significant impact on the U.S. stock market.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
