Tech stocks lead Wall Street sell-off as tensions over Greenland escalate

Technology shares led the declines successful U.S. stocks connected Tuesday arsenic investors reacted to escalating tariff rhetoric tied to President Donald Trump's renewed propulsion astir Greenland.

The State Street Technology Select Sector SPDR ETF (XLK) fell 2.2%. Nvidia, Meta Platforms and Google-parent Alphabet were each down astir 2%. Apple and Microsoft shed much than 1% each, portion Amazon and Tesla declines much than 2%.

Those moves enactment unit connected the broader market. Futures tied to the Nasdaq 100 were past down 1.8%. S&P 500 futures and Dow Jones Industrial Average futures were little by 1.5% and 1.4%, respectively.

Markets were rattled aft Trump threatened caller tariffs connected countries opposing the merchantability of Greenland to the United States, saying successful a Truth Social post that levies could statesman astatine 10% successful February and emergence to 25% by June. The president besides floated steep tariffs connected French goods and criticized European allies, fueling concerns astir a wider commercialized escalation betwixt the U.S. and European Union.

The renewed commercialized tensions travel arsenic planetary leaders stitchery astatine the World Economic Forum successful Davos, Switzerland this week, with investors watching intimately for signs that negotiations could chill tensions. But Wedbush expert Dan Ives isn't overly concerned.

"Tech stocks volition beryllium deed arsenic the 'risk disconnected dynamic' hits AI names beforehand and halfway but yet we presumption this arsenic an accidental to ain the tech winners for 2026 and beyond," Ives wrote. "The backmost and distant warfare of words betwixt Trump and the EU volition springiness investors different accidental to ain the tech winners and contempt the bears ever trying to outcry occurrence successful a crowded theater......the AI Revolution is inactive successful the aboriginal days of playing retired and this soap opera this week is not changing that dynamic successful our presumption arsenic the 4th Industrial Revolution hits its adjacent signifier of maturation successful 2026."

Ives added that an upcoming catalyst could beryllium a "robust" fourth-quarter net play expected from tech stalwarts implicit the adjacent fewer weeks, with astir $550 cardinal successful superior expenditures fueling the adjacent signifier of the AI revolution.

He listed stocks specified arsenic Nvidia, Microsoft, Palantir, CrowdStrike, Nebius, Apple, Palo Alto, Google and Tesla arsenic names helium would bargain amid existent marketplace weakness.