Stocks and Crypto Market Face Volatility From U.S. Tariffs

• Markets brace for volatility as new U.S.–EU tariffs and a Supreme Court ruling collide this week.
• Key U.S. data and earnings may reset growth and inflation expectations across global assets.
• Bitcoin and crypto face macro pressure from Fed liquidity moves and shifting risk sentiment.

Global markets are entering a heavy trading week as new U.S. tariff actions, legal scrutiny, and closely watched economic data converge. With U.S. markets closed Monday for Martin Luther King Jr. Day, investors are preparing for heightened anxiety once trading resumes.

Over the weekend, President Donald Trump announced a new 10% tariff on imports from the European Union. The move amounts to the first major escalation in U.S.-EU trade measures in nearly three months and targets trade flows estimated at nearly $1.5 trillion. Stock market futures are expected to react when markets reopen.

Adding to the uncertainty, the U.S. Supreme Court is scheduled to rule Tuesday on the legal validity of Trump-era tariffs. The case has already been delayed twice, and market participants are closely monitoring the outcome. A ruling either to uphold or strike down the tariffs would have implications for trade policy expectations, currency markets, and broader risk sentiment.

U.S. Economic Data in Focus

Several U.S. economic releases are scheduled later in the week. December pending home sales data is due Wednesday, followed by U.S. third-quarter 2025 GDP figures and November personal consumption expenditures (PCE) inflation data. 

On Friday, January, S&P Global purchasing managers’ index (PMI) readings will provide updated insight into business activity. Earnings season is also approaching, with approximately 10% of S&P 500 companies set to report results during the week.

Crypto Markets Face Macro Convergence

In digital asset markets, Bitcoin traded lower on January 18 amid declining volumes from the prior week. Attention is now shifting to a series of macro events expected to influence near-term price direction.

On Monday, the Federal Reserve is set to conduct a $15B liquidity release through Treasury bill operations, adding short-term cash to funding markets. Tuesday will see the release of an FOMC economic statement, which will update official assessments of growth, inflation, and interest rate expectations. The Supreme Court tariff ruling is also expected on Tuesday, aligning with these monetary developments.

Related: CLARITY Act and Fed Pressure Shape Bitcoin’s Quiet Market Shift