SPY ETF Slides As Global Markets Face Turmoil

U.S. stock markets kicked off the week of January 20, 2026, on a notably cautious note, with investors digesting a flurry of global and domestic developments that sent major indices lower in premarket trading. The SPDR S&P 500 ETF Trust (NYSE: SPY), a bellwether for the broader U.S. equity market, was down 1.40% to $682.01 in early trading, mirroring a wider selloff that swept through global financial markets, according to Benzinga.

This fresh wave of volatility followed declines seen on the previous Friday, as futures for the Dow Jones, S&P 500, Nasdaq 100, and Russell 2000 all pointed lower. The S&P 500 itself was off by 1.79%, with the Dow Jones not far behind at -1.66%. The Nasdaq 100 took the hardest hit, dropping 2.23%, while the Russell 2000 slid 2.17%. The negative momentum, which extended through the holiday break, reflected mounting concerns over both international and domestic headwinds.

One major source of anxiety was the ongoing trade spat between the United States and Europe, which intensified after President Donald Trump threatened to impose escalating tariffs on European goods in response to the Greenland dispute. As reported by Benzinga, these threats continued to "roil global markets" and contributed to the risk-off sentiment that overshadowed Wall Street’s opening.

Meanwhile, the bond market sent its own warning signals. The 10-year Treasury yield climbed to 4.28%, while the two-year yield stood at 3.57%. Robin Brooks, a Senior Fellow at the Brookings Institution, described the current landscape as “very scary,” warning that a “thoroughly alarming” rise in long-term government bond yields was being masked by falling short-term rates. Brooks cautioned, “The economics profession really has no idea at what level debt… becomes unsustainable.” He highlighted that the danger was most acute outside the U.S., with forward yields in Japan and the UK reaching “unprecedented” levels and fiscal issues in France reminding markets that Eurozone debt risks still “fester.” Even Germany, typically a safe haven, was not immune to yield spikes. “The synchronized rise in borrowing costs across the G10 is deeply alarming,” Brooks concluded.

Despite these jitters, the CME Group's FedWatch tool indicated markets were pricing a 95% likelihood that the Federal Reserve would leave interest rates unchanged at its upcoming January meeting. This expectation of steady rates provided a slight anchor for investors, though it was not enough to offset the broader sense of unease.

Amid this backdrop, the S&P 500 ETF Trust (SPY) attracted particular attention from institutional traders and analysts. On January 19, 2026, AI-driven models generated three distinct trading strategies for SPY, each tailored to different risk profiles and holding periods. According to the analysis, the near-term (1-5 days) and mid-term (5-20 days) outlooks were both rated as neutral, with support and resistance levels identified at $688.83/$694.33 and $690.97/$697.97, respectively. However, the long-term (20+ days) signal was strong, with support at $690.21 and resistance at $716.79. Notably, the models highlighted an “exceptional 13.4:1 risk-reward setup,” targeting a 3.9% gain versus just 0.3% risk—an unusually favorable ratio for traders seeking upside with limited downside exposure. Still, overall sentiment remained neutral as of January 19, 2026, and support levels were being tested, suggesting that the next move could be pivotal.

Elsewhere in the market, individual stocks were also in the spotlight for their divergent performances and outlooks. BHP Group Ltd. (NYSE:BHP) dropped 1.65% in premarket trading, even after the miner reported new operational records in copper and iron ore for the half-year ended December 31, 2025, and raised its copper production guidance. Benzinga’s Edge Stock Rankings noted that BHP maintained a weaker price trend over the short, medium, and long term, despite its solid quality ranking.

Alibaba Group Holding Ltd. (NYSE:BABA) fell 2.35% after the Financial Times reported that ByteDance, parent of TikTok, was launching a major challenge to Alibaba’s dominance in China’s cloud market, leveraging deep discounts and AI-driven tools. Interestingly, Benzinga’s Edge Stock Rankings indicated that Alibaba maintained a strong price trend across all timeframes, with robust growth prospects.

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) slipped 1.21% despite reports from The Wall Street Journal that it was planning a substantial expansion of its U.S. manufacturing operations. The move was intended to mitigate geopolitical risks and comply with a new trade deal with the Trump administration. According to Benzinga, TSM maintained a strong value ranking and a positive price trend over the short, medium, and long term.

United Airlines Holdings Inc. (NASDAQ:UAL) was down 2.26%, with investors bracing for quarterly earnings of $2.94 per share on revenues of $15.40 billion after the closing bell. UAL’s stock, according to Benzinga’s rankings, showed a solid growth trend across all timeframes.

On a more positive note, Netflix Inc. (NASDAQ:NFLX) eked out a 0.15% gain ahead of its earnings release, with analysts projecting quarterly earnings of 55 cents per share on $11.97 billion in revenue. Despite this uptick, NFLX maintained a weaker price trend in the short, medium, and long term, though its quality ranking remained strong.

Friday’s session had seen energy, industrials, and real estate stocks posting the biggest gains within the S&P 500, while communication services and health care issues lagged behind and closed lower. The Dow Jones slipped just 0.17% to 49,359.33, the S&P 500 edged down 0.064% to 6,940.01, and the Nasdaq Composite was off 0.062% at 23,515.39. The Russell 2000, meanwhile, bucked the trend slightly, rising 0.12% to 2,677.74.

Commodities and alternative assets also reflected the risk-off mood. Crude oil futures were trading lower by 0.10% at around $59.28 per barrel. Gold, often a safe haven in times of uncertainty, rose 1.22% to $4,735.87 per ounce, just shy of its record high. Bitcoin, however, dropped 2.28% to $90,898.68 per coin, underscoring the volatility gripping digital assets.

Global markets painted a similarly downbeat picture. Asian indices, including China’s CSI 300, Japan’s Nikkei 225, Hong Kong’s Hang Seng, India’s Nifty 50, Australia’s ASX 200, and South Korea’s Kospi, all closed lower on Tuesday. European markets were also in the red during early trade, reflecting the synchronized nature of the current market stress.

Looking ahead, investors are eyeing a packed calendar of economic data releases for the week. While Tuesday was quiet, Wednesday will see the delayed report of October’s construction spending and December’s pending home sales. Thursday brings initial jobless claims for the week ending January 17, as well as the first revision of third-quarter GDP and November’s delayed personal income, spending, and PCE data. On Friday, S&P flash U.S. services and manufacturing PMIs will be released, along with January’s final consumer sentiment figures.

With support levels being tested and global risks mounting, traders and investors alike are bracing for what could be a decisive week for U.S. equities and the broader financial markets.