US Markets Dip as Trump’s Greenland Threats Impact Global Sentiment

The U.S. markets experienced a decline on Friday following threats from President Donald Trump regarding potential tariffs on countries not supporting his controversial proposal to acquire Greenland. The S&P 500 fell by 0.06%, the Nasdaq also dropped 0.06%, and the Dow Jones decreased by 0.17%, reflecting investor unease. Throughout the week, remarks from the Trump administration—including hints at the removal of Federal Reserve Chair Jerome Powell—and concerns over escalating tensions in Iran contributed to a climate of nervousness among traders.

The situation escalated on Saturday, New Zealand Time, when the threats toward U.S. allies materialized, leading to a significant downturn in European markets. The pan-European Stoxx 600 index concluded the session 0.1% lower. Asian markets had closed prior to the intensification of these threats, reacting instead to the apparent easing of immediate military action in Iran, resulting in mixed outcomes. A recent trade agreement with Taiwan boosted the continent’s chip stocks, particularly benefiting Taiwan’s Weighted Index, which surged by 1.94%.

In South Korea, the Kospi saw a slight increase of 0.09%, while Japan’s Nikkei 225 fell by 0.32%, despite some local firms benefitting from the U.S.-Taiwan deal. The Hang Seng index in Hong Kong declined by 0.48%, and China’s CSI dropped by 0.41%.

In contrast, positive news emerged from the manufacturing sector in New Zealand, where the index reached 56.1 in December—the highest since December 2021. This optimism was reflected in local markets, with the S&P/NZX50 rising by 0.43%. Notable gains were seen in major stocks, including Infratil, Mainfreight, and Ebos, which increased by 0.63%, 0.72%, and 1.07%, respectively. Additionally, local energy stocks gained traction due to the quarterly rebalancing of the S&P Global Clean Energy Index.

Among the biggest gainers on the New Zealand main board were small-cap stocks. Rua Bioscience, a medicinal cannabis company, saw its shares rise by 9.38% following the acquisition of nearly 8% by a new shareholder. Other notable performers included WasteCo with a gain of 7.69%, Minerals Exploration increasing by 7.55%, and Move Logistics climbing by 5.36%. On the downside, Blis Technologies dropped by 5.56%, and Carbon Fund Units fell by 3.50%, reflecting ongoing market fluctuations.

In Sydney, the S&P/ASX 200 registered a gain of 0.48%, reaching a new 50-day high. Strong performances were noted from Catalyst Metals, a gold producer that rose by 14.65% on the back of analysts’ upgrades, and defence technology firm Droneshield, which increased by 7.84% after being listed among preferred government contractors.

In other news, President Donald Trump has indicated intentions to sue JPMorgan Chase for allegedly ‘debanking’ him following the January 6, 2021, protest at the U.S. Capitol. According to CNBC, Trump and his family have had a contentious relationship with financial institutions over claims of discrimination based on political beliefs. In a statement via his platform, Truth Social, he denied reports of offering JPMorgan CEO Jamie Dimon the position of Federal Reserve chair during a White House meeting. A spokesperson for JPMorgan clarified, “While we won’t get specific about a client, we don’t close accounts because of political beliefs.”

On a brighter note for investors, Bitcoin has marked its third consecutive weekly gain, a first since July. The cryptocurrency saw significant movement, bouncing off US$90,000 early in the week and surpassing US$95,000 for the first time since November 2025. By Wednesday, Bitcoin approached US$98,000 before settling at US$95,000.

Looking ahead, today’s edition of The Post highlights that major chocolate manufacturers are actively seeking alternatives to cocoa beans, which face threats from climate change. Additionally, companies such as Adidas are reportedly facing challenges due to a decline in demand for branded sportswear. For this week’s Small Business Project, Aimee Shaw features local AI company Visir AI, which is seeing increased adoption of technology among small and medium-sized enterprises for enhanced operational efficiency.