Stock indexes, including the S&P 500, Dow Jones, and Nasdaq 100, closed down on Tuesday due to rising geopolitical tensions between the US and Europe over Greenland. President Trump’s push to purchase Greenland has led to fears of trade confrontations, prompting a risk-off mood in asset markets.

Bond yields rose on Tuesday, with the 10-year T-note yield reaching a 4.75-month high. Concerns about an independent Fed and soaring Japanese government bond yields contributed to the increase. The strength of gold and silver mining companies also boosted stocks as the Greenland crisis led to safe-haven buying of precious metals.

US natural gas-producing stocks saw a significant increase on Tuesday as the price of nat-gas surged over 26% to a 3-week high. The upcoming focus is on economic news, tariff developments, the next Fed Chair, and Greenland, with key data releases expected throughout the week.

Earnings season has begun positively, with 88% of S&P 500 companies beating expectations so far. The Supreme Court did not issue a ruling on challenges to President Trump’s reciprocal tariffs, delaying a decision until at least another month. The odds of a rate cut at the next FOMC meeting are discounted to 5%.

Overseas stock markets settled lower on Tuesday, with the Euro Stoxx 50, China’s Shanghai Composite, and Japan’s Nikkei Stock 225 all experiencing declines. Interest rates, including the 10-year T-note yield and European government bond yields, moved higher, reflecting market concerns and economic indicators.

Read more at Nasdaq: Stocks Plunge on Greenland Crisis and Soaring Bond Yields