S&P 500, Dow, and Nasdaq Drop to Two-Week Lows Amid Rising Geopolitical Tensions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
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Source: NASDAQ.COM
- Market Decline: The S&P 500 index fell by 1.23%, the Dow Jones Industrial Average dropped by 1.07%, and the Nasdaq 100 decreased by 1.36%, all reaching two-week lows, reflecting investor concerns over escalating geopolitical tensions.
- Tariff Threats: President Trump announced a 10% tariff on goods from eight European countries starting February 1, escalating to 25% in June unless a deal for the purchase of Greenland is reached, potentially exacerbating trade tensions and impacting market confidence.
- Rising Bond Yields: The 10-year Treasury note yield surged to 4.31%, a 4.75-month high, driven by concerns over an independent Fed and negative sentiment from soaring Japanese government bond yields, which may undermine confidence in U.S. debt.
- Natural Gas Stocks Surge: U.S. natural gas-producing stocks soared over 22% to a three-week high as natural gas prices surged, indicating strong investment appeal in energy stocks amid a volatile market environment.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
