Wall Street plunged sharply on Tuesday after US President Donald Trump threatened to impose new tariffs on eight European countries, intensifying tensions over his push to assert American influence over Greenland.

The sell-off affected nearly all sectors, extending losses from last week. The S&P 500 fell 143.15 points, or 2.1%, to 6,796.86, marking its steepest decline since October. The Dow Jones Industrial Average dropped 870.74 points, or 1.8%, to 48,488.59, while the Nasdaq composite slid 561.07 points, or 2.4%, to 22,954.32.

Technology stocks led the decline, with Nvidia down 4.4% and Apple falling 3.5%. Retailers, banks and industrial companies also lost ground, including Lowe’s (-3.3%), JPMorgan Chase (-3.1%) and Caterpillar (-2.5%).

Global markets reacted similarly, with European and Asian indices falling. Japanese long-term bond yields hit record levels amid concerns over fiscal policy. Gold and silver prices surged 3.7% and 6.9% respectively, while bitcoin retreated to around $89,700 from last week’s peak above $96,000.

Trump said on Saturday that he would levy a 10% import tax in February on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland. Combined imports from these European nations exceed those from the US’s two largest import partners, Mexico and China.

The threat has drawn sharp diplomatic reactions in Europe, with leaders considering countermeasures, including retaliatory tariffs. Analysts warned that such measures could push up inflation, complicating the Federal Reserve’s policy outlook.

Investors are also monitoring corporate earnings amid the tariff uncertainty. Industrial giant 3M fell 7% after reporting mixed quarterly results, while other major firms, including Johnson & Johnson, Halliburton and Intel, are expected to release earnings this week.