Trump Threatens Tariffs, Market Drops 1.5% Amid Risk-Off Sentiment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Should l Buy DHI?
Source: Benzinga
- Market Reaction: The S&P 500 fell 1.5% to 6,840 points due to Trump's aggressive trade stance towards Europe, marking its worst session since late November, primarily dragged down by consumer discretionary and technology stocks.
- Tariff Threats: Trump threatened to impose a 10% tariff on several European countries starting February 1 if negotiations over Greenland control fail, with potential increases to 25% by June, which could impact up to 25% of U.S. exports to Europe, leading to cautious market reactions.
- Fixed Income Volatility: Long-dated Treasury yields climbed to their highest levels since late September, with the 30-year yield rising 6 basis points to 4.90%, reflecting a risk-off sentiment among investors.
- Precious Metals Surge: Safe-haven demand pushed gold prices up 1.9% to $4,760 per ounce and silver nearly 5% to $94.50 per ounce, indicating market concerns over economic uncertainty.
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Analyst Views on DHI
Wall Street analysts forecast DHI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DHI is 157.00 USD with a low forecast of 117.00 USD and a high forecast of 191.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
3 Buy
6 Hold
2 Sell
Hold
Current: 158.130
Low
117.00
Averages
157.00
High
191.00
Current: 158.130
Low
117.00
Averages
157.00
High
191.00
About DHI
D.R. Horton, Inc. is a homebuilding company. The Company constructs and sells homes through its operating divisions in 125 markets across 36 states. The Company’s segments include Homebuilding, Rental, Forestar, Financial Services, and Other. The Homebuilding divisions are primarily engaged in the acquisition and development of land and the construction and sale of residential homes. The Company’s rental segment consists of single-family and multifamily rental operations. The single-family rental operations construct and lease single-family homes within a community and then generally market each community for a bulk sale of rental homes. The Forestar segment is a residential lot development company with operations in 59 markets across 24 states. The Financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. It also conducts insurance-related operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Antitrust Investigation: The Trump administration is considering an antitrust probe into homebuilders, causing stocks of major firms like DR Horton and Lennar to drop by 1.8%, indicating market concerns over potential regulatory impacts on profitability.
- Information Flow Review: The investigation may focus on the flow of information with the trade group Leading Builders of America, amid worries that member companies could use this information to limit new home supply or coordinate pricing, potentially harming market competition.
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- Antitrust Investigation Potential: The Trump administration is considering an antitrust investigation into U.S. homebuilders, although no final decision has been made, raising concerns about the industry's outlook and potentially impacting investor confidence.
- Stock Price Fluctuations: Following this news, shares of Lennar Corp. (LEN) and D.R. Horton (DHI) fell approximately 2%, reflecting the market's sensitivity to potential regulatory risks, which could lead to short-term capital outflows.
- Industry Impact: Should the investigation proceed, it could have far-reaching implications for the entire homebuilding sector, especially in the current market environment where companies may face stricter compliance requirements, thereby affecting profitability.
- Future Developments Monitoring: As the investigation could commence in the coming weeks, investors need to closely monitor related developments to assess the long-term impacts on the market and individual stocks, particularly in the context of the recovering real estate market.
See More
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PulteGroup Performance: PulteGroup's stock has fallen by 1.1%, reflecting challenges in the construction and real estate sector.
Hovnanian Enterprises Drop: Hovnanian Enterprises has experienced a decline of 0.5%, suggesting potential issues within the company or market conditions.
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- Industry Trends: The declines indicate a potential downturn in the housing market.
See More
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See More
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