U.S. stock markets fell sharply on Tuesday, with all three major indexes posting their worst single-day losses since October 10, Reuters reported. The S&P 500 dropped 143.15 points, or 2.06 percent, to 6,796.86, the Nasdaq Composite lost 561.07 points, or 2.39 percent, to 22,954.32, and the Dow Jones Industrial Average fell 870.74 points, or 1.76 percent, to 48,488.59. All three slipped below their 50-day moving averages.

Trading volumes rose to roughly 20.6 billion shares, above the 20-day average of 17.01 billion, while the CBOE Volatility Index climbed to 20.09 points, its highest close since November 24.

The decline followed President Donald Trump’s weekend announcement that additional 10 percent tariffs would take effect February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Great Britain, with rates rising to 25 percent on June 1 until a deal for the U.S. to purchase Greenland is reached. Greenland and Denmark have rejected the sale.

Jamie Cox, managing partner at Harris Financial Group, said he saw no evidence of a market exodus. “I'm not at the point yet where I'm willing to say what is happening with Greenland, and the resurgence of the tariff threat back and forth, is going to precipitate a correction in the equities markets,” he said, adding a 3 to 5 percent drop this week would be surprising.

The tariff news revived fears reminiscent of last April, when Trump’s levies pushed the S&P 500 near bear market territory. Gold hit record highs, U.S. Treasury yields rose amid selling, and Bitcoin fell more than 3 percent.

Global bond markets also reacted. Japanese government bonds plunged, sending yields to record highs, while Tokyo stocks and the yen declined after Prime Minister Sanae Takaichi called a snap election. European yields rose, and U.S. Treasuries saw heavy selling at the long end, Reuters reported.

Despite volatility, the U.S. economy remains strong. Investors await data on third-quarter GDP, January PMI, and the Personal Consumption Expenditures report. Earnings season continues, with Netflix closing 0.8 percent lower before reporting quarterly results after the bell.