Dow futures extend losses to nearly 500 points as Wall Street resumes trade after holiday

Futures on Wall Street continued to trade with losses as trading will resume later this evening Indian Standard Time after Monday's holiday.

Futures tied to the Dow Jones continue to trade with losses of nearly 500 points, while those linked to the S&P 500 are down 75 points or over 1%. Nasdaq futures are also trading with losses of 350 points as futures began trading Monday evening local time.

European equities sold off on Monday with the Pan-European Stoxx 600 index posting its worst day in two months. Autos and Luxury stocks were the worst affected.

Global markets have been put back into risk-off mode after US President Donald Trump threatened eight European nations and the UK with tariffs of up to 10% starting February 1 this year, if they do not comply with his plans of acquiring Greenland for "national security purposes."

Greenland is currently a self-governed territory in the Arctic region under the kingdom of Denmark. Multiple protests across Greenland and Denmark have indicated that the people are against any form of alliance with the US.

In a letter to Norway's Prime Minister on Monday, Trump wrote that he is not obligated to think of global peace now since Norway "did not give him the Nobel Peace Prize, despite having solved over eight wars."

Trump's tariff move may have put equities in risk-off mode but has increased the appeal for haven assets. Spot Gold prices touched nearly $4,700 an ounce overnight, while Silver prices are nearing the mark of $95 an ounce. The US Dollar index, after a few days of strength, is back down to levels of 99 as the Swiss Franc and Japanese Yen outperformed.

All eyes later today will again be on the US Supreme Court, as to whether or not they hear Donald Trump's tariff case determining its legality.

Jeff Kilburg, CEO of KKM Financial, thinks a investors should buy the dip if equities fall due to tariff fears, however. “Markets initial reaction to potential tariffs [is] presenting a buying opportunity as focus will shift away from Davos and back to Q4 earnings season mid week.”

(With Inputs From Agencies)