Stock Market Live January 21, 2026: S&P 500 (SPY) Still Sinking on Tariff Concerns

After yesterday’s ridiculous pullback, the major indices are gearing up for another down day.

All thanks to potential tariffs on European countries that are opposed to the U.S. takeover of Greenland. At the moment, the S&P 500 is down about 0.11%. The SPDR S&P 500 ETF (SPY) is down about 0.18%. The Dow is down another 0.28%, as the Nasdaq dips about 0.2%.

Remember, “Trump said he would slap tariffs on imports from eight NATO members, including France and the United Kingdom, in retaliation for moving troops to Greenland. The new tariffs will start at 10% next month and increase to 25% in June,” as noted by CNBC.

Crisis will create opportunity

However, as bad as things may appear, the crisis may soon give way to opportunity.

“If you’re a medium to longer term investor, probably this is a pretty healthy buying opportunity, because the tailwinds of this economy are completely unaffected by the goings on of the past weekend,” said Scott Ladner, investment chief at Horizon, as quoted by CNBC.

Look at Europe.

Unsurprisingly, shares of luxury and beverage companies tied closely to European exports pulled back. LVMH, which owns iconic brands such as Moët & Chandon, Dom Pérignon, and Veuve Clicquot, dropped roughly $7.50 on the news.

However, such pullbacks are temporary.

Global demand for spirits, luxury goods, and European brands is still strong. If — as many expect — the tariff standoff proves temporary, today’s weakness could represent a buy-the-dip opportunity for patient, long-term investors.

Moving forward, not only can investors potentially profit from a recovery in spirits stocks, but also European exchange-traded funds that are seeing declines, such as the Vanguard FTSE Europe ETF (VGK).

With an expense ratio of 0.06%, the VGK ETF tracks the FTSE Developed Europe All Cap Index, which measures the investment return of stocks located in the major markets of Europe, including Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

Gold Just Broke Records 

With the tariff threats, gold is now up to $4,873 and rocketing higher on the latest Greenland issue.  Other factors for gold’s rise include expectations of more interest rate cuts, central banks adding tonnes of gold to their reserves, and strong inflows into exchange-traded funds.

 With $5,000 gold now a strong possibility, some are now calling for $7,000. That includes analysts at ICBC Standard, which says gold could rally to $7,150. Goldman Sachs also said, “Gold remains our highest conviction long or base case, the price by the end of this year is $4,900,” as quoted by CNBC.

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