U.S. stock futures dipped as traders assessed the potential impact of President Donald Trump's threat to impose new tariffs on European countries over Greenland. By 03:07 ET, Dow futures had fallen 677 points, S&P 500 futures dropped 102 points, and Nasdaq 100 futures declined 449 points. Trump's demand for U.S. ownership of the territory has sparked global market jitters, with analysts estimating the tariffs could cost the Eurozone between 0.2% and 0.5% of GDP if implemented.

President Trump is set to discuss Greenland at the World Economic Forum in Davos, where he will meet with various parties. European leaders are considering retaliatory measures, including steep tariffs on U.S. goods worth 93 billion euros. The situation has raised concerns about the future of NATO and EU-U.S. trade relations, which were recently stabilized by a summer trade agreement. The potential rift could significantly impact global markets, depending on the outcome of these discussions.

A Supreme Court ruling on the legality of Trump's tariffs is anticipated, with markets widely expecting the court to rule against the president. Trump has used the International Emergency Economic Powers Act to justify the tariffs. If the Supreme Court strikes them down, the administration is prepared to impose new duties immediately. This ongoing trade tension continues to influence market sentiment and could lead to further volatility if the Supreme Court rules against the tariffs.

Netflix is set to report its latest quarterly results, with analysts expecting earnings of $0.55 per share on revenue of $11.96 billion. The focus will be on Netflix's bid for Warner Bros. Discovery, which is also being pursued by Paramount Skydance. This acquisition is seen as a strategic move to boost Netflix’s revenues and expand its content library, crucial for maintaining its competitive edge in the streaming industry.