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Netflix shares have been pressured in recent months.

Key Takeaways

• Netflix shares slid Wednesday, extending their monthslong decline after the streaming giant failed to impress investors with its latest financial results.
• Netflix's earnings narrowly topped fourth-quarter estimates, but the streaming giant's first-quarter outlook disappointed. The company also said it would pause stock buybacks in order to finance its acquisition of Warner Bros. Discovery.

Investors are scrutinizing Netflix's results more closely than ever. They don't like what they see.

The streaming giant's stock was down nearly 5% in recent trading, sliding after reporting earnings that narrowly topped analysts' estimates, as Netflix (NFLX) failed to impress investors with its outlook amid concerns around its efforts to buy Warner Bros. Discovery (WBD).

The move lower extends a monthslong decline for the entertainment stock, with Wednesday's losses leaving Netflix shares down nearly 40% from last summer's highs. Uncertainty around Netflix's pending purchase of Warner Bros. Discovery, which faces likely regulatory scrutiny as well as a competing bid that has forced the company to rework its offer, has added to the pressure on the stock.

Why This Matters to Investors

Wednesday's losses underscore how Netflix investors, long accustomed to strong results from the streamer, have heavily punished the stock for underwhelming results in recent quarters.

Netflix said late yesterday it expects earnings per share of $0.76 on revenue of $12.16 billion in the current quarter, slightly below the EPS of $0.82 on revenue of $12.19 billion that analysts surveyed by Visible Alpha were looking for. Netflix also said it plans to pause stock buybacks to help it accumulate cash for the Warner Bros. deal, the change coming after amending its offer to an all-cash deal in an effort to fend off a competing offer from Paramount Skydance (PSKY).

The streamer's fourth-quarter results came in slightly better than expected, with revenue of $12.05 billion compared to the $11.97 billion analyst consensus, and EPS of $0.56, a cent above estimates.

William Blair analysts wrote following the results that while the "overall fundamentals of the business remain solid," they expect Netflix's stock could remain under pressure until the Warner Bros. deal is completed.

That could mean more volatility until at least April, when Netflix is set to report first-quarter results and shareholders are scheduled to vote on the deal, analysts at Wedbush told clients Wednesday.

Both firms, which reiterated "outperform" ratings for the stock, suggested that could potentially set Netflix up for a rebound after the deal is finalized.

While ratings are still in flux, Wall Street analysts' mean target compiled by Visible Alpha at $115 would suggest over 26% upside from the stock's recent level.

News of the day for Jan. 21, 2026

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President Trump arrived in Switzerland Wednesday ahead of a scheduled address at the World Economic Forum

Stock futures are slightly lower this morning after sinking on Tuesday owing to new tariff threats from President Donald Trump; investors are awaiting Trump's speech today at the World Economic Forum in Davos, amid ongoing tensions related to the president's efforts to acquire Greenland; Netflix stock is tumbling after the streaming giant released earnings and said it would pause stock buybacks to help finance the Warner Bros. Discovery acquisition; Johnson & Johnson shares are moving lower after the company's fourth-quarter profits fell short of Wall Street estimates; and United Airlines shares are rising after its results topped expectations. Here's what you need to know today.

Stock Futures Inch Lower After Tuesday's Selloff

Stocks are pointing to a marginally lower open on Wednesday as markets remain under pressure amid ongoing geopolitical uncertainty. Futures tied to the Dow Jones Industrial Average and the tech-heavy Nasdaq were down 0.2%, while S&P 500 futures slipped 0.1%. On Tuesday, the Dow lost 1.8%, the S&P 500 fell 2.1%, and the Nasdaq sank 2.4%, the worst day for the major indexes since October. Gold futures hit another record this morning—the precious metal was up 2% at $4,865 an ounce recently—as investors seek out safe havens amid the renewed market volatility. The 10-year Treasury yield, which influences a range of consumer borrowing costs, was little changed at 4.29% after hitting its highest level since August yesterday. Bitcoin was at $88,500, down from an overnight high of $90,000, extending a weeklong slump for the cryptocurrency.

Trump Slated to Speak at Davos Amid Greenland Tensions

President Trump has arrived in Davos, Switzerland to speak at the World Economic Forum and meet with European leaders, after spending the last several days pushing for a U.S. acquisition of Greenland. Trump's speech before government and corporate leaders is scheduled to begin at 8:30 a.m. ET. Trump over the weekend threatened to impose new tariffs on several key European allies, starting Feb. 1, if the U.S. is not allowed to acquire Greenland. Along with addressing those threats and the ongoing political conflict around Greenland, Trump is expected to unveil major housing market reforms focused on improving affordability, including plans to allow 401(k) funds to be used for down payments on a home and restrictions on institutional investors in the housing market.

Netflix Stock Drops as Outlook, Stock Buyback Pause Disappoint

Netflix (NFLX) shares are tumbling Wednesday morning after the streaming giant issued disappointing first-quarter guidance and said it's pausing stock buybacks to help pay for the pending Warner Bros. Discovery (WBD) acquisition. Late Tuesday, Netflix reported better-than-expected fourth-quarter results on the top and bottom lines, and its full-year revenue outlook was slightly above estimates. But the entertainment giant's first-quarter forecasts of $12.16 billion in revenue and $0.76 earnings per share were each lower than analysts surveyed by Visible Alpha anticipated. Netflix recently amended its agreement to acquire Warner Bros. Discovery to an all-cash one, rather than the previous stock-and-cash offer. Netflix shares were down about 7% ahead of the opening bell, trading at their lowest levels since late 2024.

Johnson & Johnson Stock Slips as Profits Fall Short of Estimates

Shares of Johnson & Johnson (JNJ) are also moving lower this morning after the pharmaceutical and medical devices giant posted fourth-quarter results. Revenue of $24.56 billion topped estimates, but adjusted earnings per share of $2.46 was 1 cent shy of estimates, while its reported earnings per share of $2.10 was well below the $2.43 analyst consensus. Sales grew across both of Johnson & Johnson's key segments, and also grew both in the U.S. and internationally. Shares of the Dow component, which hit a record high of near $220 last Thursday, were down more than 3% at around $211 in recent premarket trading.

United Airlines Stock Jumps as Results Top Expectations

United Airlines (UAL) stock is gaining this morning after the carrier reported better fourth-quarter results than analysts had forecast. The airline said after the closing bell Tuesday that it generated revenue of $15.4 billion in the quarter, up 5% year-over-year, while adjusted earnings per share came in at $3.10, which was 11 cents higher than the analyst consensus. The company said canceled flights and refunds to customers because of the government shutdown's impact on the air traffic control system in October and November cost it about $250 million in pre-tax earnings for the quarter. United shares were up more than 3% recently.

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Several key 2026 real estate trends will have a big influence on home ownership in America.

Key Takeaways

• Mortgage rates are expected to dip slightly in 2026, which may improve affordability, but borrowing costs will remain relatively high.
• Housing costs will vary widely by location, with better deals more likely in parts of the Midwest and South than in high-cost coastal and Northeast markets.
• Buyers may find value by considering adjustable-rate mortgages or new construction, since ARMs offer lower initial rates and homebuilders are offering buyers incentives.

Home sales remained near historic lows in 2025, as high housing costs and elevated mortgage rates continued to keep buyers on the sidelines. But housing affordability is expected to improve in 2026—if only slightly.

That could create an opportunity for house hunters who have been looking for the right moment to enter the market. Here are some housing trends to watch if you’re in the market to buy a home in 2026.

Mortgage Rates Will Drop, But Not as Much as You Think

Mortgage rates peaked at more than 7% in early 2025 and then eased in the second half of the year to around 6.2%. That offered some relief from the high borrowing costs that have helped freeze the housing market.

Why This Matters to You

Buying a home is often the biggest financial decision people make, and conditions like mortgage rates, prices, and local affordability can shape monthly budgets and household wealth. Understanding how the market may evolve in 2026 helps prospective buyers decide whether waiting, relocating, or choosing different financing could meaningfully improve affordability.

But most experts don’t expect mortgage rates to fall much further. The Mortgage Bankers Association projects rates will remain between 6% and 6.5% in the coming year. Real estate firm Redfin projects an average mortgage rate of 6.3% in 2026, while the National Association of Realtors also saw mortgage rates hanging at “around 6%.”

“As we go into next year, the mortgage rate will be a little bit better," said National Association of Realtors Chief Economist Lawrence Yun. "It will be a modest decline that will improve affordability."

Mortgage rates aren't expected to move significantly, even though the Federal Reserve is likely to continue lowering short-term interest rates in the coming year. 

The Fed has reduced interest rates by a total of 1.75 percentage points since it first started cutting in September 2024. But mortgage rates haven’t come down in kind. In fact, rates went up after the Fed first began cutting, and are only now just starting to return to September 2024 levels. Economists believe that additional Fed rate cuts are unlikely to loosen mortgage rates further, which closely track the long-term borrowing costs reflected in the 10-year Treasury yield.

“The risk of growing budget deficits and elevated inflation expectations will keep longer-term rates from falling further, even as the Fed cuts short-term rates,” the MBA wrote in its 2026 outlook. “MBA expects there will be periods where rates drop, which will provide moments of refinance activity, similar to what has occurred several times in 2025.”

There Are Deals, But They May Not Be Local

Housing prices are high, but the high-cost housing trends aren’t spread evenly across the U.S. Some areas are experiencing intense strains on affordability, while prices in other areas haven’t risen as fast.

Cities on the California coast and in the heavily populated Northeast remain among the highest-cost areas of the country to live, according to Oxford Economics. But in some areas in the South and Midwest, housing prices are more reasonable, even if they are growing at a faster rate. 

Oxford Economics pointed to cities like Cleveland, Cincinnati, Detroit, St. Louis, New Orleans, Louisville, Ky., Memphis, Tenn, Tucson, Ariz. and Oklahoma City, Okla. as cities that still offer more-affordable housing options. 

“Although most of these metros have lower house prices than the U.S. average, more than half have seen stronger house price appreciation than the [rest of the] US over the last five years. Still, what differentiates these more affordable metros is the differences in property taxes and insurance,” wrote Oxford Economics.

An Adjustable-Rate Mortgage Might Be Right for You

With mortgage rates hovering around 6%, an increasing number of borrowers have turned to adjustable-rate mortgages, commonly known as ARM loans. These loans can offer a lower interest rate for a set period, often five years, before periodically resetting based on a benchmark. In September, approximately 10% of home borrowers opted for an ARM loan, compared to the historical average of around 6% of mortgage loans. 

ARMs can provide a path to a more affordable mortgage, but they carry some risk if the borrower can’t make the payments when the rate increases. However, borrowers who choose ARMs generally have better credit scores, as these loans are evaluated against the current mortgage rate, not the introductory rate period.

“In this environment where borrowers are struggling with lack of affordability, moving to an ARM can result in real savings,” wrote MBA Deputy Chief Economist Joel Kan.

It May Be Better to Buy A New Home

While high prices have depressed home sales across the board, sales of newly constructed homes are outpacing those of existing homes, which remain at historically low levels.

Generally, new homes have been more expensive than existing homes. However, more homebuilders are offering incentives, making new home prices more competitive with those of existing homes. In August, the most recent month for which data is available, new homes sold for an average of $413,500, lower than the average price of $422,600 for existing homes. 

Builder incentives, which can include mortgage rate buy-downs, reduced closing costs, and credits for housing design changes, have helped push new home sales higher. The limited inventory of existing homes is also making new home prices competitive. 

“Buyers are seeing a lot of value in new homes and taking advantage of the unusually high glut of new homes for sale on the market,” said Heather Long, chief economist at Navy Federal Credit Union.

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Intel shares have had a strong run in recent months after a string of positive news.

Key Takeaways

• Intel is slated to post fourth-quarter results after the closing bell later today.
• Options pricing suggesting traders expect the stock could move up to 9% in either direction following the results.

Intel is set to report fourth-quarter earnings after the market closes today, with traders anticipating a big move from the chipmaker's stock following the results.

Options pricing suggests traders expect Intel (INTC) stock could move up to 9% in either direction by the end of the week. At the high end, a move of that size from Wednesday's close around $54 could push the stock up to $59, its highest point since early 2021. At the low end, the stock could drop to around $49, where it was just earlier this week.

Intel's stock is up over 40% since the struggling chipmaker last reported earnings in October, with results that came in stronger than analysts expected. Rumors about potential new customers, along with a show of support from the Trump administration after the U.S. government took a big stake in August, have also boosted optimism about the chipmaker's stock.

Why This Matters to Investors

Though Intel's stock remains well off its 2021 highs, the shares have had a strong run in recent months after a string of positive news. A strong showing Thursday could help convince more investors of its turnaround, amid lingering uncertainty about its business.

Intel is expected to report revenue of $13.41 billion in the quarter, down about 6% year-over-year, while adjusted earnings per share are forecast to fall to 9 cents from 13 cents a year ago, according to estimates compiled by Visible Alpha.

Last week, KeyBanc analysts upgraded the stock to "buy" from a neutral rating, pointing to signs of better-than-expected AI demand. However, most Wall Street analysts are more cautious. Of the eight analysts with current ratings tracked by Visible Alpha, KeyBanc is the only firm recommending buying the stock, compared to one "sell" and six "hold" ratings.

Wedbush analysts, who maintained a neutral rating heading into the results, told clients Tuesday that they think Intel's recent headlines have had "seemingly disproportionate impacts on the stock," and that they still have concerns about competition and a potential decline in PC demand as a memory shortage raises prices.

The mean price target of analysts surveyed by Visible Alpha around $45 would imply roughly 17% downside from the stock's close Wednesday.

UPDATE—Jan. 22, 2026: This article has been updated since it was first published to reflect more recent analyst estimates and share price values.

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Markets were rattled on Tuesday as President Trump ramped up efforts to force the U.S. acquisition of Greenland.

Key Takeaways

• The S&P 500 is unlikely to pull back more than 5% amid resurgent concerns about a U.S.-EU trade war, according to one Wall Street analyst, who expressed confidence in the stock market's outlook.
• Stocks posted their worst day in months on Tuesday as markets reacted to President Trump's threat of imposing tariffs on European goods to force the continent give in to his demands that the U.S. acquire Greenland, a semiautonomous territory of fellow NATO member Denmark.

Stocks posted their worst day in months on Tuesday. Some strategists say it’s an opportunity. 

“I think at worst maybe you get a 4-5% drawdown here—call it 6,500 on the S&P. I’m inclined to buy it because I think the set-up into this was quite good,” Chris Verrone, chief market strategist at Strategas, told CNBC on Tuesday. 

The S&P 500 fell 2.1% Tuesday to about 6,800 as investors responded to President Trump’s threat to impose tariffs on select European countries if they refuse to allow the U.S. to acquire Greenland. 

Why This Is Important

The renewed threat of a U.S.-EU trade war injected fresh uncertainty into global markets on Tuesday, but some investors believe the stock market remains on solid footing, ready to rebound when the conflict over Greenland is resolved.

Verrone said signs of “a pro-cyclical recovery... through all different asset classes—bond yields, commodities, transports, retail, banks,” underpinned his bullish outlook. The pullback to start this week, he said, could even help to cool sentiment that Verrone said “was getting a little too hot” and posing a risk to the stock market. 

As with last year’s bouts of Trump-driven volatility, “the bark will be worse than the bite on this issue,” wrote Wedbush analyst Dan Ives of Trump’s new tariff threats.

Wall Street coined a special term for Trump's bombastic approach to diplomacy: the TACO trade, short for "Trump Always Chickens Out." Investors who braved the volatility unleashed by Trump's "Liberation Day" tariff announcement last April were handsomely rewarded for sticking with it. The S&P 500 rose nearly 40% between its early-April lows and the end of the year.

Ives expressed confidence on Tuesday that negotiations between the U.S. and EU would eventually ease tensions and lead to an agreement on Greenland. “Ultimately we view this as an opportunity to own the tech winners for 2026 and beyond,” he wrote. 

Treasury yields soared on Tuesday, with the 10-year yield breaking 4.3% for the first time since September. Yields have climbed in recent months amid uncertainty about the direction of inflation and the health of the labor market, as well as worries about President Trump’s efforts to control the Federal Reserve’s rate-setting policy group. 

“It was accompanied with cyclical stocks outperforming,” said Verrone of the recent uptick in yields. “To us, that’s a message that, ‘Hey, this is about economic growth getting better.’” 

The U.S. economy grew at an annualized rate of 4.3% in the third quarter, up from 3.8% in the prior quarter, according to the most recent report from the Bureau of Economic Analysis. The S&P 500 is expected to report earnings grew about 14% in the fourth quarter, according to FactSet Research.

Take A Number: A Striking Figure In Economics News Today

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Americans are paying for most of the cost of tariffs, according to a recent study.

Key Takeaways

• Americans are paying for 96% of the cost of President Donald Trump's tariffs, a new study shows.
  
• The findings contradict Trump's claims that tariffs are a tax on foreign countries and they do not cost the United States.
  
• The research by economists at Germany's Kiel Institute is the latest in a series of analyses that have yielded similar results.
  

Americans are paying nearly all of the cost of President Donald Trump's import taxes, another analysis has found, contradicting his claims that foreigners are footing the bill.

American businesses and consumers are paying 96% of the cost of Trump's sweeping tariffs, according to a study released Monday by the Kiel Institute for the World Economy, a German think tank. Researchers at the institute analyzed 25 million transactions valued at almost $4 trillion to reach their conclusions.

"The tariff functions not as a tax on foreign producers, but as a consumption tax on Americans," wrote the researchers, led by Julian Hinz, a professor at Bielefeld University. "Every dollar of tariff revenue represents a dollar extracted from American businesses and households."

What This Means for the Economy

The latest findings shed light on the economic impact of tariffs, just as Trump threatens a fresh round against Europe in a bid to seize control of Greenland from Denmark.

The president has repeatedly claimed foreign exporters are absorbing the import taxes, which raised more than $200 billion in revenue in 2025.

"A tariff is a tax on a foreign country," Trump told supporters in Pennsylvania during the 2024 presidential campaign. "A lot of people like to say, 'Oh, it’s a tax on us.' No, no, no. It’s a tax that doesn’t affect our country."

Other economists have different estimates for how much of the tariff cost has been passed on to U.S. businesses and consumers, but they have mostly concluded that Americans bear a significant portion of the cost—if not all of it. In October, economists at Goldman Sachs estimated U.S. customers were paying 55% of the tariff costs, rising to 70% this year.

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European leaders will meet this week to formulate a response to Trump's threat.

Key Takeaways

• President Donald Trump's latest threats to seize Greenland have raised uncertainty about a potential trade war between the U.S. and Europe.
  
• Trump's threatened tariffs on Europe could drag down U.S. economic growth by an entire percentage point next year, Goldman Sachs forecasters estimated.
  
• Uncertainty has been a major drag on the economy since Trump launched his tariff campaign last year, as businesses put hiring plans on hold.
  

The uncertainty that roiled the economy and undermined the job market in 2025 flared up again this weekend after President Donald Trump renewed his threats to seize Greenland from U.S. ally Denmark.

Trump stoked a fresh round of unease Saturday when he threatened to impose a 10% tariff against eight European countries, escalating to 25% in June, until Denmark sells the autonomous territory to the U.S.

European leaders are reportedly considering retaliatory moves, and French President Emanuel Macron proposed invoking the European Union's "anti-coercion" instrument. Those countermeasures, sometimes called a "trade bazooka," could include restricting imports and exports, restricting access to financial markets, and imposing a wide range of other punishments.

Stock prices, the dollar, and bonds all fell Tuesday as financial markets digested the possibility of a trade war between the U.S. and Europe.

The uncertainty surrounding U.S. trade policy has been a major factor in the economy ever since Trump first threatened, then imposed, unprecedented import taxes against nearly every U.S. trading partner last year. Businesses have cited the unpredictability of Trump's tariff campaign as a major reason they have dramatically slowed down hiring this year, which has pushed up the unemployment rate.

What This Means For The Economy

Growing uncertainty around trade policy discourages business investment and hiring, putting downward pressure on economic growth. Tariffs would also disrupt global supply chain and raise import costs that would feed inflation, and complicate the Federal Reserve’s efforts to manage interest rates.

Uncertainty about future tariff rates can delay businesses' expansion and hiring plans. For example, a manufacturer might put a new factory on hold until it has a better idea of how much parts and materials from overseas will cost, and how it should manage its supply chains in the new tariff regime.

Tariffs Could Have Major Impact

Economists see a wide range of possible outcomes of the current tensions, ranging from a quick and friendly resolution to a full-blown trade war. If tariffs do actually go into effect as Trump outlined, they say both the U.S. and global economies will suffer serious consequences.

The European Union opted to negotiate with Trump rather than retaliate after he imposed tariffs on the bloc last year, but his latest aggressive rhetoric could provoke a more stern response.

"While the uncertainty around President Trump’s tariff announcement remains very high, the firm and uniform response of EU leaders suggests that retaliation is more likely than last year if Trump decides to move forward with a 10% tariff on Feb. 1," economists at Goldman Sachs led by Giovanni Pierdomenico wrote in a commentary.

The uncertainty itself has its own impact, regardless of what ends up happening.

"The risk of tariffs and policy uncertainty being a larger drag on the global economy early this year increased over the weekend after the U.S. threatened tariffs on six EU countries, the UK, and Norway, as it digs its heels in on acquiring Greenland," Ben May, director of global macro research and Rory Fennessy, senior economist at Oxford Economics, wrote in a commentary.

If Trump implements the tariffs, U.S. economic growth as measured by Gross Domestic Product would be dragged down to 2.3% in 2026, Oxford estimated, down from an estimated 2.8% without the new tariffs.

"The deceleration in the economy would be noticeable ahead of the midterm elections," May wrote.

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Citigroup CEO Jane Fraser thinks investors will once again focus on American assets.

Key Takeaways

• Although investors may be reacting to headlines by selling American assets, Citigroup CEO Jane Fraser doesn't expect the strategy to endure.
• Fraser said on CNBC Tuesday that she doesn't see obvious investment alternatives.

The move away from American assets isn’t likely to last, Citigroup CEO Jane Fraser said.

On Tuesday, U.S. stocks plunged, the dollar fell and bond prices dropped, sending Treasury yields sharply higher, while investors piled into gold and silver. These are the sort of immediate reactions that are to be expected after recent headlines, Fraser said on CNBC Tuesday, when trading resumed after the White House announced over the long weekend that tariffs will be used in its quest to control Greenland.

Momentum will once again favor American assets, the Citigroup Inc. (C) leader said, stating: “I don’t see where else you [investors] go.”

“Never bet against the American entrepreneur. The consumer is strong,” Fraser said, later adding: “The geopolitical backdrop is a challenging one, but the companies know how to navigate through this.”

Why This News Matters to Investors

Financial markets have been volatile since President Donald Trump announced plans to impose fresh tariffs on countries that oppose his plan to assume control of Greenland. Executives and analysts are divided over how long current uncertainty may last.

Fraser said corporate leaders are confident that government figures will reach a resolution in the coming days. Plus, companies and investors have learned how to handle trade uncertainty and disruption in recent years, she said.

“The market’s been able to see through some of the noise and really focus on the fundamentals,” from a longer-term perspective, she said.

From that vantage point, the U.S. is in a strong position, Fraser said. Spending was robust during the holidays and could pick up this spring because of changes in the tax code, she said. Companies may also benefit from deregulation and recent spending on AI and other priorities, Fraser added.

Financial services firm Wedbush is also optimistic that the current acrimony will fade. “The bark will be worse than the bite on this issue and tariff threats as negotiations take place and tensions ultimately calm down between Trump and EU leaders,” Wedbush analysts wrote in a research note Tuesday.

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Shares of SanDisk have nearly doubled this year already.

Key Takeaways

• Demand from hyperscalers support "higher pricing" for Sandisk, Citi said in a report published Monday.
• Shares of Sandisk rose almost 10%, and are close to almost doubling in just the first few weeks of the year.

The hottest tech stock in the S&P 500 this year got even hotter today, marking continued enthusiasm for a pocket of the AI trade even as U.S. markets sputtered to start the trading week.

Shares of Sandisk (SNDK) hit a new intraday record high on Tuesday, pushing its year-to-date returns to about 90%—outperforming the so-called Magnificent 7, as well as the broader market, by a wide margin. Today's rise: nearly 10%, best in the S&P 500, on a day when markets broadly, including tech shares, retreated amid trade and geopolitical uncertainty and a move toward haven assets.

WHY THIS MATTERS TO YOU

Data storage stocks have been on a tear recently, benefiting from the big tech firms' investment in AI—and even outperforming them. That trend was underscored Tuesday as Sandisk stock jumped while broader markets retreated.

The lift came after Citi boosted its earnings estimates and target prices for Sandisk, as well as other data storage stocks that have been on a tear lately. They remain key beneficiaries, the analysts wrote, of "solid hyperscaler demand supporting higher pricing" for memory, the bank's research analysts said in a 2026 outlook report for tech hardware companies published yesterday.

Citi analysts including Asiya Merchant said that Sandisk "sounded the most constructive" among the companies it hosted at company meetings at CES 2026 earlier this month on NAND (a type of flash memory) industry fundamentals. Sandisk told Citi there was upside in demand associated with data centers, including from Nvidia's (NVDA) just-launched Vera Rubin AI computing platform. That would more than offset any impact to its business from lower demand related to PCs or smartphones, according to the Citi report.

Supply and demand dynamics favor data storage companies as supply for NAND is expected to be undersupplied through next year, while demand is set to rise over the same period as AI workloads expand.

That said, bank analysts said other data storage companies such as Seagate Technology (STX) and Western Digital (WDC) were also beneficiaries of strong storage demand. Shares of both companies are up this year, too, though nowhere near as much as those of SanDisk.

Citi maintained its bullish stance, or Buy rating, on the stock, and raised its 2026 earnings-per-share estimate to $17.78 from $13.96. It also boosted its price target to $490 from $280, well above Visible Alpha's bearish mean near $311. Shares closed at around $453 on Tuesday, implying upside of about 8%.

Angela Weiss / AFP / Getty Images

Traders are monitoring U.S. Treasury yields as trade tensions push borrowing costs higher.

Key Takeaways

• The 10-year U.S. Treasury yield climbed to its highest level in months as renewed trade tensions and policy uncertainty rattled global bond markets.
• Higher yields reflect investor concerns about inflation, rising deficits, and the risk that tariffs could reignite broader economic instability.
• As borrowing costs rise, households and businesses may face more expensive mortgages, loans, and investment financing.

The bond market, which has made President Donald Trump rethink policy before, is protesting again and sending borrowing costs higher.

The yield on the 10-year U.S. Treasury note—a key input into mortgage rates and business investment decisions—rose to its highest level in months on Tuesday. The jump followed Trump’s demand that the United States should be allowed to buy Greenland, risking a trade war with the European Union.

“Investors are concerned that the threat of a 200% tariff on French wine and champagne could be the beginning of a further escalation in the trade tensions that many had hoped to leave behind in 2025,” Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets, wrote in a note to clients.

The 10-year yield jumped to around 4.29% in late-afternoon trading, its highest level since August. Yields move in the opposite direction from bond prices.

Why This Matters

Rising bond yields translate directly into higher mortgage, loan, and business financing costs. For consumers and investors, sustained market anxiety could slow economic activity and strain household budgets.

Greenland wasn’t the only driver of Tuesday’s moves, Lyngen wrote, flagging a “broader tone of bearishness” in global bond markets. Investors tend to sell government bonds when they see policy-related risks—higher budget deficits, tariffs or overly aggressive stimulus efforts—driving up inflation.

By selling those bonds, they force governments to pay higher interest rates to compensate investors for those risks. That ultimately drives up borrowing costs for households and businesses.

It’s a dynamic that, in the past, has helped convince Trump to back away from some policies. In April, he scaled back his Liberation Day tariffs after bond markets sold off sharply. In July, he backed away from firing Federal Reserve Chair Jerome Powell after markets showed their disapproval.

A series of factors, including Trump’s ongoing tensions with the Fed, could keep driving rates higher.

“Recent developments suggest that U.S. yields are more likely to drift higher than lower in the coming months,” Guneet Dhingra, senior U.S. economist at BNP Paribas, wrote on Tuesday, foreseeing the 10-year yield rising to 4.5% this year.

‘A Perfect Storm’

On Tuesday, bond markets were navigating “a perfect storm,” wrote Gennadiy Goldberg, head of U.S. rates strategy at TD Securities.

In Japan, bond investors are raising concerns over the country’s fiscal path. That’s spilling over into U.S. bonds, given the global nature of bond markets—European pension funds invest in both Japanese and U.S. securities and vice versa.

Closer to home, U.S. economic data was “solid” to close out the year, Goldberg said. A resilient economy gives the Federal Reserve less reason to cut interest rates again, since the economy may not need an extra boost from lower borrowing costs. Some analysts now expect the Fed may not cut rates at all in 2026.

The Fed only sets short-term interest rates, not longer-term borrowing costs. However, if markets expect the Fed to keep rates higher on average over the next decade, the 10-year yield tends to rise. Mortgage rates follow along, making buying a home or refinancing more expensive.

Add to that the Greenland headlines, which sparked “fears about foreign liquidations” of U.S. Treasury bonds, Goldberg wrote. 

‘Sell America’ Again?

To retaliate against U.S. pressure and tariffs, European officials could impose their own tariffs. However, they can also retaliate by dumping some of their holdings of U.S. government debt—forcing the Treasury to pay more interest to lure investors back.

There were signs of a “sell America” trade in April, when Trump’s aggressive tariff policies spooked markets. That quickly faded, as global investors decided to stick with U.S. government bonds—a big pool of assets where they can earn interest as they invest their spare cash.

European investors “likely have limited options if they wish to rotate out of Treasuries,” Goldberg wrote, given the sheer size of the U.S. bond market. However, some may choose to sell or perhaps buy fewer U.S. government bonds going forward, he added.

America’s Largest Lender

AkademikerPension, a Danish pension fund, said on Tuesday it was selling its U.S. Treasurys. It told Bloomberg that rising U.S. debt levels made the country “not a good credit,” though it also flagged Trump’s pressure to buy Greenland from Denmark.

Europe “owns a lot of Treasuries,” George Saravelos, a strategist at Deutsche Bank, wrote in a note to clients on Sunday, tallying some $8 trillion in U.S. bonds and equity holdings from European countries.

“For all its military and economic strength, the U.S. has one key weakness: it relies on others to pay its bills via large external deficits,” Saravelos wrote. “Europe, on the other hand, is America's largest lender.”

The moves over the last few days “have potential to further encourage dollar rebalancing,” Saravelos wrote, as investors sell U.S. dollar assets and put pressure on the greenback.

Treasury Secretary Scott Bessent sought to ease tensions on Tuesday, saying the “worst thing countries can do is escalate against the United States." He recalled the “panic” after Trump’s tariff plans in April sparked retaliation.

“What I’m urging everyone here to do is sit back, take a deep breath, and let things play out,” Bessent told reporters in Davos, Switzerland.