US stock futures edged higher on Tuesday evening, offering a modest rebound after Wall Street suffered its sharpest sell-off in months.
Dow Jones Industrial Average futures (YM=F), futures linked to the S&P 500 (ES=F), and Nasdaq 100 futures (NQ=F) all rose about 0.1%.
The cautious move higher follows a regular bruising session that has seen investors rush for the exits against a backdrop of global insecurity. The Dow (^DJI) fell more than 850 points, while the S&P 500 (^GSPC) fell and the tech-heavy Nasdaq Composite (^IXIC), both fell more than 2%, weighed down by broad losses in megacap tech stocks.
All three major indexes recorded their worst daily performances since October 10, with the S&P 500 and Nasdaq now in the red for 2026.
Trump has escalated tensions by reiterating his push to acquire Greenland and threatening to slap 200% tariffs on French wine and champagne after French President Emmanuel Macron reportedly turned down a role on Trump’s proposed “Peace Board” for Gaza.
Tuesday’s decline was accompanied by a classic “sell America” trade. US Treasury yields jumped sharply, with the 10-year yield briefly topping 4.3%, while the US dollar weakened. Gold (GC=F) and silver (SI=F) soared to more records.
Wednesday all eyes will be on the World Economic Forum in Davos, where Trump is set to hold meetings with other countries on Greenland and give his main address.
Wednesday also brings a day of oral arguments at the Supreme Court on Trump’s firing of Lisa Cook. The outcome of the case lays the groundwork for the members of the Federal Reserve to be united in a legal framework that protects from presidential firing. The case is a historic examination of the Fed’s independence as attempts are made to establish the central bank as a “uniquely structured, quasi-private entity”.
Meanwhile, attention is turning to a busy stretch of corporate earnings that investors hope can stabilize markets. Netflix ( NFLX ) fell in after-hours trading after its earnings showed more uncertainty ahead of the streaming giant. Johnson & Johnson (JNJ) and Charles Schwab (SCHW) are scheduled to report results on Wednesday, among a host of mid-sized financial institutions.
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