Nasdaq futures extend losses as Trump declares trade war over Greenland. What's next?

Trump's Declaration of Trade War

Today, Nasdaq futures opened lower due to President Trump's threats regarding tariffs on Greenland. Trump plans to impose a 10% tariff starting February 1 on countries like the UK, France, and Germany unless the U.S. is allowed to purchase Greenland, with tariffs increasing to 25% by June 1. This announcement has greatly impacted the market, leading to risk-off movements.

Market Condition and Impact

Last year’s tariffs from Trump triggered growth concerns, causing selling pressure. Investors are wary of a repeat of this scenario, and bearish sentiment could persist if negative developments continue. Market participants are closely monitoring Trump’s actions, with the phrase "Trump Always Chickens Out" becoming a focal point for sentiments.

Nasdaq Technical Analysis

Daily Timeframe

On the daily chart, Nasdaq has broken below a rising wedge, with a natural target around the 24,900 level. If this is achieved, dip-buyers may step in, yet further escalations could apply additional bearish pressure.

4-Hour Timeframe

On the 4-hour chart, the price has reached a swing level around 25,270, which serves as an initial dip-buying opportunity, while sellers will look for a breach to aim for the next level at 24,900.

1-Hour Timeframe

On the 1-hour chart, there are no significant updates. Buyers are likely to accumulate at these levels in anticipation of a bounce, while sellers will be watching for a breakdown.

Upcoming Catalysts

Tomorrow, the weekly U.S. ADP employment data will be released, followed by jobless claims on Thursday and U.S. Flash PMIs on Friday. Investors should also watch for Trump's posts regarding Greenland.