Trump Proposes Tariffs on NATO Allies Over Greenland, Spurring Market Reactions; Google Seen in Buy Zone

Dow Jones Industrial Average futures declined 180 points in early pre-market trading following unverified reports that former President Donald Trump has proposed retaliatory tariffs on NATO allies, citing strategic concerns over Greenland's geopolitical status. The proposed measures, if enacted, would target key European partners including Germany, France, and the Netherlands, potentially disrupting supply chains and inflaming transatlantic relations. The move is framed as a response to perceived inaction on Arctic sovereignty issues, though no official policy document has been released. The potential for increased trade friction has already impacted related asset classes. NATO-focused exchange-traded funds (ETFs) dropped 2.3% in pre-market sessions, with the iShares NATO ETF (NATO) shedding $1.4 billion in market value. Meanwhile, the U.S. dollar (USD) strengthened 0.6% against the euro and 0.8% against the Japanese yen, reflecting flight-to-safety flows amid escalating geopolitical risk. In contrast, technology stocks showed resilience. Alphabet Inc. (GOOGL) shares rose 1.7% in pre-market activity, entering a technical 'buy zone' as identified by multiple quantitative models. The stock has gained 24% year-to-date, driven by strong cloud revenue growth (up 31% YoY) and increased AI-driven ad monetization. Analysts note that Google’s forward P/E of 29.4 remains below the sector average, suggesting undervaluation relative to growth prospects. The market reaction underscores the dual pressures of geopolitical uncertainty and sector-specific strength. Defense contractors and trade-sensitive industrials are under pressure, while tech equities, particularly those with global scale and robust cash flows, continue to attract capital. The situation remains fluid, with no formal announcement from the Trump campaign or government sources.