US Stock Markets LIVE Updates: Dow Jones drops 700 points as US President Trump's Greenland plan stokes trade fears

US Stock Market LIVE Updates: US stocks tumbled sharply on Tuesday (January 20) after US President Donald Trump escalated tensions over Greenland, threatening new tariffs on countries that oppose the sale

of the Danish territory to the United States. The threat triggered a sell-off in US assets, sending Treasury yields higher and pushing the dollar lower.

The Dow Jones Industrial Average fell 725 points, or roughly 1.5%, while the S&P 500 dropped 1.3%, heading for its worst session in two months. The Nasdaq Composite also slipped 1.5%. The Cboe Volatility Index (VIX) surged to a session high of 20.69, its highest level since November 25, and was last trading at 19.61.

Trump, in a Truth Social post on Saturday, said imports from eight NATO countries would face tariffs starting at 10% from February 1, rising to 25% on June 1, "until such time as a deal is reached for the complete and total purchase of Greenland."

Also, the dollar fell to its lowest level in two weeks, and currency hedging costs climbed as Trump showed no signs of backing down in his campaign to wrest control of Greenland from Denmark and threatened new tariffs on France.

Watch this space for all the Live updates on Wall Street moves, global market reactions and key developments shaping US trade policy.