U.S. stock futures drop on Trump’s Europe trade tariffs

S&P 500 Futures dropped 0.7% to 6,930.0 points, Nasdaq 100 Futures declined almost 1% to 25,437.50 points, while Dow Jones Futures shed 0.6% to 49,269.0 points

U.S. stock index futures dropped on Sunday evening after President Donald Trump said he will impose trade tariffs on several European countries until a deal to sell Greenland to Washington is reached.

Trump’s comments spooked markets and sent investors scrambling for safe haven, with gold prices hitting a record high in evening trade.

S&P 500 Futures dropped 0.7% to 6,930.0 points by 23:41 GMT. Nasdaq 100 Futures declined almost 1% to 25,437.50 points, while Dow Jones Futures shed 0.6% to 49,269.0 points.

Trading volumes were muted ahead of Monday’s Martin Luther King Jr. Day holiday.

Futures dropped after a slightly negative Friday session on U.S. stock market, as markets declined before several earnings prints due this week.

Trump over the weekend said he will impose an additional 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain from February 1.

The duty will increase to 25% by June if no deal over Greenland is reached.

European countries largely decried the threat, with France proposing a range of retaliatory measures if Trump proceeded with his duties.

Trump had earlier raised the prospect of deploying the U.S. military for Greenland.

Focus this week is squarely on a host of major December quarter earnings, with Netflix Inc and Johnson & Johnson the largest companies set to report this week.

Netflix will report its earnings on Tuesday, along with 3M Company and U.S. Bancorp.

J&J will report on Wednesday, along with Charles Schwab Corp, Prologis Inc, and Halliburton Company.

The figures will be closely watched for more cues on the U.S. economy, especially after a swathe of major bank earnings from last week offered mixed cues.