US stocks plunged over 1.5% early Tuesday as President Trump reignited trade-war tensions with Europe over Greenland. The Dow Jones fell over 700 points, the S&P 500 sank 1.4%, and the Nasdaq Composite retreated 1.6%. Investors faced a rocky return to trading as the risk of a US-EU trade war rattled nerves during earnings season.

Over the weekend, Trump threatened eight NATO countries with extra import duties unless a deal was made on Greenland. The EU discussed $108 billion in retaliatory tariffs and the possibility of an $8 trillion fallout for US assets. Trump then threatened a 200% import tariff on France’s wine after Macron turned down an invitation.

The EU warned of an “unflinching, united, and proportional” response to the threats, keeping tensions high. Treasury yields jumped to four-month highs as a sell-off in Japanese bonds added pressure. The dollar hit a two-week low as gold and silver reached record highs, reflecting the volatile market conditions.

Investors braced for a busy earnings slate, with Netflix’s results due after market close. Tech stocks tumbled as Trump’s trade-war tensions escalated. Nvidia, Microsoft, Meta, Oracle, Alphabet, Broadcom, Tesla, and Amazon all saw declines. Nvidia-backed AI cloud companies Nebius and CoreWeave plunged over 5%.

A stock market pullback caught investors off guard, with Wall Street’s calm shattered by Greenland and Japan shocks. Hawaiian Electric and D.R. Horton stocks fell premarket. Treasurys joined a global bond slide, and RAPT stock surged on a $2.2 billion acquisition. Gold prices held near record levels, and oil prices steadied amidst EU-US trade concerns over Greenland.

Read more at Yahoo Finance: Dow, S&P 500, Nasdaq sink as Trump tariff threats and bond sell-off rattle nerves