US pre-open: Futures lower after 'sell America' trade intensifies
By Iain Gilbert
Date: Wednesday 21 Jan 2026
(Sharecast News) - Wall Street futures were in the red ahead of the bell on Wednesday after yesterday's heavy losses, fuelled by Donald Trump's escalated tariff threats ahead of his scheduled appearance in Davos.
As of 1225 GMT, Dow Jones futures were down 0.07%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.09% and 0.29% softer, respectively.
The Dow closed 870.74 points lower on Tuesday, the blue-chip's worst daily performance since October, while the sell-off dragged both the S&P 500 and the Nasdaq into negative territory for the year.
Major indices were under renewed pressure on Tuesday as the so‑called "sell America" trade gathered pace, with Treasury yields jumping and the dollar weakening. The yield on the benchmark 10‑year Treasury note surged and briefly moved above 4.3% amid a broad shift out of US‑centric assets.
The move came as Donald Trump escalated his push to acquire Greenland, doubling down on tariff threats against US allies. On Tuesday he warned that French wine and champagne could face 200% duties after Emmanuel Macron declines to join his proposed Board of Peace for Gaza. That followed Trump's weekend announcement that imports from eight NATO member states would be hit with rising levies "until such time as a Deal is reached for the Complete and Total purchase of Greenland", starting at 10% on 1 February and rising to 25% on 1 June.
Amid the heightened tensions, Danish pension operator AkademikerPension said it would exit its roughly $100m holding of US Treasurys, citing concerns over US government finances. The fund confirmed its plan to close the position by the end of the month, with the decision coming as relations between Washington and Copenhagen deteriorate over Trump's Greenland stance
In the corporate space, Johnson & Johnson issued better-than-expected FY26 guidance on Wednesday and also reported Q4 earnings that topped estimates, while oil services giant Haliburton traded higher in pre-market action after posting Q4 revenue and earnings that came in ahead of Wall Street estimates.
On the macro front, US mortgage applications rose 14.1% week-on-week in the week ended 16 January, extending the 28.5% surge in the previous period, according to the Mortgage Bankers Association. The sharp back-to-back increases came alongside a drop in the benchmark 30-year mortgage rate to a 16-month low of 6.16%. Applications to refinance a mortgage rose 20%, while applications for a mortgage to purchase a new home increased 5%.
Still to come, September and October construction spending numbers will be released at 1500 GMT, as will December pending home sales figures.
Reporting by Iain Gilbert at Sharecast.com
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