Traders work on the floor at the New York Stock Exchange, Jan. 20, 2026.<\/p>\n
Michael Nagle | Bloomberg | Getty Images<\/p>\n
Equity futures pulled back again on Wednesday, a day after the three major averages saw their worst day since October<\/a>, as the “sell America” trade<\/a> continues with the U.S. dollar weakening.<\/p>\n Futures tied to the Dow Jones Industrial Average<\/a> fell 153 points, or 0.3%. S&P 500 futures<\/a> slipped 0.2%, while Nasdaq 100 futures<\/a> were 0.3% lower.<\/p>\n In premarket trading, Netflix<\/a> shares dropped 7% after the streaming giant’s first-quarter guidance and margin outlook for 2026 disappointed investors<\/a>. The company’s earnings and revenue for the fourth quarter<\/a> just barely beat expectations.<\/p>\n Stocks posted sharp losses in Tuesday’s session as President Donald Trump escalated his Greenland tariff threats ahead of his scheduled appearance at the World Economic Forum in Davos, Switzerland, on Wednesday. The 30-stock\u00a0Dow\u00a0slipped more than 870 points, or about 1.8%, while the\u00a0S&P 500\u00a0lost roughly 2.1%. A drawdown in technology stocks led the sell-off, with the Nasdaq Composite\u00a0sliding 2.4% on the day.<\/p>\n All three benchmark indexes logged their worst daily performances since Oct. 10. The sell-off also dragged the S&P 500 and the Nasdaq into negative territory for 2026.<\/p>\n The so-called sell America trade<\/a>\u00a0on Tuesday was accompanied by a spike in U.S. Treasury yields and a decline in the U.S. dollar. The 10-year Treasury yield<\/a> surged and briefly topped 4.3% at the high of the day.<\/p>\n The U.S. dollar came under pressure yet again on Wednesday, with the dollar index<\/a> down 0.2%.<\/p>\n “America First is quietly driving diversification away from dollar assets, especially among government entities,” wrote Joyce Chang, chair of global research at JPMorgan in a note. “While we have long argued that the dollar maintains its transactional FX dominance, ‘Sell America’ narratives of diversification away from dollar assets have reemerged quietly but persistently.”<\/p>\n Treasury Secretary Scott Bessent told reporters<\/a> in Davos Wednesday that the Trump administration was “not concerned” about the previous day’s sell-off. <\/p>\n On Tuesday, Trump declined to say how far he’d go to make\u00a0Greenland<\/a>\u00a0part of the U.S., telling a reporter, “You’ll find out.” The president has not ruled out military action to seize the island, and recently threatened to put tariffs of up to 25% on eight NATO members<\/a> if they block his takeover bid. <\/p>\n Speaking in Davos on Tuesday, European Commission President Ursula Von der Leyen called Trump’s new tariff proposals a “mistake” that would plunge Europe and the U.S. into “a dangerous downward spiral.”<\/p>\n “Our response will be unflinching, united and proportional,” she said, adding that the EU stood in “full solidarity” with Greenland and Denmark. <\/p>\n Bernd Lange, who chairs the European Parliament’s international trade committee, will hold a press conference in Strasbourg, France, later on Wednesday. The BBC, citing unnamed sources, reported<\/a> that he will announce a suspension of the U.S.-Europe trade deal finalized<\/a> over the summer. <\/p>\n Also speaking at the WEF on Tuesday, French President Emmanuel Macron<\/a> said a potential response to new U.S. tariffs was to use the EU’s Anti-Coercion Instrument<\/a>, which would restrict U.S. businesses’ access to Europe’s single market. Triggering the ACI could exclude American suppliers from participation in EU public tenders, place export and import restrictions on goods and services and put limits on foreign direct investment.<\/p>\n