Market Update – January 19, 2026

The markets have closed for the day.

• U.S. markets are closed today in observance of Martin Luther King Jr. Day, with trading expected to resume on Tuesday.
• Meanwhile, in Frankfurt, shares of Alphabet, Nvidia, and Microsoft saw declines, and Nasdaq 100 futures also dropped.
• Investors are closely watching the upcoming U.S. Supreme Court decision regarding tariffs, anticipated as early as Tuesday, along with potential responses from the EU.

During Monday’s European trading session, shares of Nvidia (NVDA.O), Alphabet (GOOGL.O), and Microsoft (MSFT.O) experienced declines, along with Nasdaq 100 futures. This drop follows President Trump’s warnings about increasing tariffs on European nations against the backdrop of the Greenland dispute.

With Wall Street observing the holiday, there was a reduction in offshore trading activities. Nonetheless, the indicators suggested a soft opening for U.S. stocks on Tuesday ahead of the market’s commencement.

In Frankfurt, Alphabet shares fell by 2.4%, while Nvidia and Microsoft both dropped by 2.2%. Nasdaq 100 futures were down by approximately 1.25%.

Tensions around trade are resurfacing, particularly affecting U.S. tech stocks which seem to be stalling after a recent surge. “People are contemplating how they manage their investments,” noted Francesca Fornasari from Insight Investments.

On Saturday, President Trump indicated plans to impose higher tariffs on various European goods unless the U.S. is granted the opportunity to purchase Greenland. According to reports, tariffs will initially be set at 10% starting February 1st, rising to 25% by June 1st.

In the last trading session before the holiday, Nvidia closed at $187.13, Alphabet at $332.84, and Microsoft at $456.81.

Regular trading on the New York Stock Exchange and Nasdaq will resume on Tuesday. Some investors think the market reaction may be excessive. “It seems like there’s more commotion than substance at this stage,” commented Leonard Kwan from T. Rowe Price.

The risks are twofold. Should European entities retaliate or if the U.S. government grows anxious, a swift decline in stock prices, the value of the dollar, and credit could occur simultaneously.

Legal uncertainties are on the horizon, as the U.S. Supreme Court is poised to rule on a significant challenge to broad tariffs established under emergency provisions, possibly issuing a decision as soon as Tuesday. U.S. Trade Representative Jamison Greer mentioned that the administration is prepared to reinstate tariffs quickly if the court deems them unlawful.

Investors are shifting their attention to the Federal Reserve’s policy meeting set for January 27th and 28th, with a press conference on the latter date. This meeting could serve as a critical moment for interest rate predictions following the tumultuous start to the year.

On Tuesday, key considerations will be whether U.S. futures stabilize prior to the market opening and if the tariff discussions will escalate or de-escalate leading up to the Supreme Court’s opinion day on January 20.