Stock index futures sank as Wall Street returned to trading Tuesday as the standoff between the U.S. and Greenland continued to heat up. S&P futures (SXP) -1.6%, Nasdaq 100 futures (US100:IND) -1.8% and Dow futures (INDU) -1.

"As such, the more likely outcome, in our view, is that both sides recognize that a major escalation would be a lose-lose proposition, and that compromise eventually prevails."

It is often the case that U.S. equity index futures rally off the lows following a session when American investors were on holiday. The buy-the-dip mentality kicks in, particularly if the reason for the initial retreat is geopolitical.

Stocks were poised to sink at the open Tuesday after President Donald Trump threatened to impose new tariffs on eight NATO allies for opposing his desired sale of Greenland to the U.S.

US stock index futures plunge as Trump threatens 25% tariffs on Europe over Greenland. Nasdaq 100 erases 2026 gains, breaking key support levels.

Dow Jones futures fall by 1.25% to near 48,900 during the European session on Tuesday, while S&P 500 and Nasdaq 100 futures decline 1.34% and 1.56% to below 6,900 and 25,300, respectively.

S&P 500 and Nasdaq futures slid to one-month lows on ​Tuesday as U.S. traders returned from the long weekend to witness risk-off selling, sparked by renewed tariff threats from President ‌Donald Trump against Europe over control of Greenland.

Major gauges slumped as the market reacted to Trump's heavy-handed attempts to buy Greenland outright over the weekend.

U.S. stock futures dropped and Treasury prices slipped as President Trump’s tariff threats over Greenland stirred up global markets. Futures tied to the Dow Jones Industrial Average were 1.5% lower, while S&P 500 futures were down 1.