US markets drop 2% as Trump's Greenland talk sparks fresh volatility
US stocks slid over 2% on Tuesday after President Trump revived his interest in buying Greenland and Japanese debt took a hit.
This ended a quiet streak in the markets, sent the dollar lower, pushed the VIX (the "fear index") to its highest since November, and drove gold prices to new highs.
Why does this matter?
Big swings like this make investing riskier—especially for anyone dabbling in stocks and bonds.
With volatility surging and Treasury yields rising, experts say it's smart to be cautious right now.
Trade tensions (like Trump's tariff threats on Europe) and uncertainty around the Federal Reserve are making things even shakier.
What's behind all this?
Geopolitical drama is fueling market jitters: not just Trump's Greenland comments, but also fears of foreign investors dumping US assets.
Plus, a Danish fund is offloading $100 million in Treasuries, and an upcoming Supreme Court case could affect how independent the Fed stays.
Hedge fund managers are urging everyone to keep their guard up until things settle down.