Stock Market Live January 20, 2026: S&P 500 (SPY) Crushed by Tariff Threat
Quick Read
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Trump threatened 10% tariffs on eight European countries from February 1 until a Greenland deal is reached. Tariffs could rise to 25%.
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France is pushing the EU to deploy its Anti-Coercion Instrument in response to tariff threats that European leaders called unacceptable.
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Gold trades at $4,725 and silver at $95 amid escalating trade war fears.
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Gold Now up to $4,742
Gold could test $5,000 soon.
With more global uncertainty, gold is up another $64 to $4,742.68.
For one, there’s new uncertainty as investors react to President Trump’s threat to impose tariffs on eight European countries opposed to the proposed U.S. takeover of Greenland.
Other factors for gold’s rise include expectations of more interest rate cuts, central banks adding hundreds of tonnes of gold to their reserves, and strong inflows into exchange-traded funds (ETFs).
For example, according to the World Gold Council, as gold prices shattered records about 53 times in 2025, annual inflows into physically backed gold ETFs rocketed to $89 billion, “the largest on record as the gold price delivered its strongest performance since 1979. In turn, global gold ETFs’ assets under management (AUM) doubled to an all-time high of US$559 billion, with holdings reaching a historic peak of 4,025t, up from 3,224t in 2024.”
Crisis should become an opportunity
With the threat of a 200% tariff on French wines, related stocks are pulling back.
However, that tariff-induced pullback may be temporary, creating a buy opportunity. For example, LVMH – which owns Moët & Chandon, Dom Pérignon, and Veuve Clicquot — is $3 lower on the news. But again, that may be creating an opportunity once the trade threats fade.
Shares of Remy Cointreau (REMYY) are also seeing a slight pullback on the news.
Futures are pointing to a bad open.
S&P 500 futures are down 1.4%. The SPDR S&P 500 ETF (SPY | SPY Price Prediction) is down 1.42%. The Dow Jones is down 1.25%. The Nasdaq is down 1.73%.
All as investors react to President Trump’s threat to impose tariffs on eight European countries opposed to the proposed U.S. takeover of Greenland.
According to the BBC, “Trump announced a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland would come into force on 1 February, but could later rise to 25% – and would last until a deal on Greenland was reached.”
200% Tariff Threats on French Wine
Trump also threatened a 200% tariff on French wines and champagne on reports that President Emmanuel Macron does not want to join Trump’s Board of Peace.
On top of that, there are growing fears of a retaliatory trade war from Europe.
In fact, as noted by CNBC, European leaders have described Trump’s fresh tariff threats as “unacceptable,” and are reportedly considering countermeasures — with France said to be pushing for the European Union to use its strongest economic counter-threat, known as the “Anti-Coercion Instrument.”
Gold Quickly Nearing $5,000
In addition, the uncertainty and chaos are also likely to push gold closer to $5,000 and silver closer to $100. At the moment, gold trades at $4,725. Silver is up to $95.
And unfortunately, the latest round of chaos isn’t likely to cool any time soon. We also have boiling tensions with Iran, Minneapolis, and now with Europe and Russia. And until some of the chaos fades, tension and uncertainty will continue.
And volatility will continue to spike.
Despite the Chaos, Stay Calm
Easier said than done, I know.
But remember, markets are resilient. We’ve come back from far worse.
If you panic, you sell. And if you sell, you miss the potential for the recovery rally. We have to remember that markets are resilient and eventually recover, as they have historically. In fact, look back at the history of bad moves, and you’ll see that each time they were followed by a recovery rally.
Also, as noted by Warren Buffett, “During such scary periods, you should never forget two things: First, widespread fear is your friend as an investor, because it serves up bargain purchases. Second, personal fear is your enemy. It will also be unwarranted,” as quoted by MarketWatch.
Plus, as he has famously said, “Be fearful when others are greedy, and be greedy when others are fearful.” Sure, there’s plenty of fear out there. But fear won’t last forever. Even the biggest companies in the world will have hiccups, but in 10 or 20 years from now, should be just fine.
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