Frederiksen set to start a third term as Danish prime minister thanks to firm position on Greenland

COPENHAGEN, Denmark (AP) — Mette Frederiksen is set to begin a third term as Denmark’s prime minister, during which she is expected to maintain a firm stance against U.S. President Donald Trump’s ambitions for Greenland, the kingdom’s semiautonomous territory, and continue supporting Ukraine.

With another term, the 48-year-old Social Democrat joins the ranks of Europe’s longest-serving and most experienced leaders. Frederiksen has led the European Union and NATO member country since mid-2019.

She is likely to press ahead with efforts to strengthen Denmark’s defenses and deepen cooperation with European allies, as the United States signals a reduced military role in Europe. Frederiksen has been among Europe’s strongest supporters of Ukraine since Russia’s full-scale invasion began on Feb. 24, 2022.

The prime minister's popularity among EU peers and her “really standing there against Trump” on Greenland are major factors behind Frederiksen's electoral success, Carolin Hjort Rapp, a political scientist from the University of Copenhagen, told The Associated Press.

In early January, Trump renewed calls for the strategic, mineral-rich Arctic island to come under U.S. control, but leaders of Denmark and Greenland insisted on the territory's right to self-determination.

The world order established after World War II is undergoing major change, according to a 70-page document outlining the new government's vision.

“The Russian threat to Europe and the simultaneous uncertainty from the American side are significantly changing the security situation," it said.

Frederiksen told a news conference that she was “happy and proud” that Denmark now ranks among NATO’s top spenders and emphasized that the country would remain committed to this course.

Denmark spent 3.2% of gross domestic product on defense in 2025, an almost threefold increase compared to 2022.

At home, Frederiksen faces a complicated political landscape, but her new center-left alliance may allow her to move away from unpopular conservative policies pushed by her previous government, which was a grand coalition of both left and right.

The new government, created after two months of negotiations, will include Frederiksen’s Social Democrats, the centrist Moderates led by outgoing Foreign Minister Lars Løkke Rasmussen, the Green Left (SF) and the Danish Social Liberal Party, the Danish Royal House said in a statement on Monday.

Frederiksen and Rasmussen survived the March general election, Hjort Rapp said, because of their prominent role in the Greenland crisis.

“They kind of survived, but at same time the voters were not satisfied with what the government had been doing before, so they wanted to move to other parties," the political scientist said. “You see smaller parties that gained way more votes than before,” she added, referring to parties on both the left and the far-right.

The governing vision unveiled on Tuesday afternoon includes multiple commitments, such as ambitious climate measures, reducing social inequality and tax relief for companies. In specific nods to demands of coalition partners, the government plans to make pig production more sustainable, introduce free dental care in the next few years and reduce value-added tax for some foods. A social media ban for kids under 15 was also mentioned.

Under pressure from a rising far-right, Frederiksen's previous Cabinet had veered to the right. Frederiksen announced proposals that include a potential “emergency brake” on asylum and tighter controls on criminals who lack legal residence. Her government already had unveiled a plan to allow the deportation of foreigners who have been sentenced to at least one year in prison for serious crimes.

Her government also removed a popular national holiday, the Great Prayer Day, to finance higher defense spending. Danish media reported on Tuesday that the holiday might be restored by the new government in the future.

In her second term, support for Frederiksen waned as the cost of living rose. But she enjoyed a bump in popularity as the government navigated the crisis over Trump’s designs on Greenland, which culminated in January in a short-lived threat to impose tariffs on European nations that opposed his call for U.S. control of the vast Arctic island.

“She is a good crisis prime minister,” said Joachin Luther Rothenborg, an artist from Copenhagen.

Rothenborg said that Frederiksen was less good when it comes to “the level where everybody, the normal people, have their problems.”

Bigitte Christensen, a fashion designer from Copenhagen, said that “I think that’s what we are here in Denmark: we have the welfare, as we call it."

She said the fact that Denmark now had a center-left government gave her hope.

“Of course, it’s a lot of our tax money going for that, but I appreciate it very much, because the broader shoulders should help or be there for those who aren’t so lucky" she said.

Claudia Ciobanu reported from Warsaw, Poland.

Party leaders Martin Lidegaard (The Social Liberal Party), Pia Olsen Dyhr (SF), incoming Danish Prime Minister Mette Frederiksen (Social Democrats), and Lars Loekke Rasmussen (Moderates) present the government platform for a new government in Denmark, at Marienborg in Kongens Lyngby, Tuesday, June 2, 2026. (Mads Claus Rasmussen/Ritzau Scanpix via AP)

Party leaders Martin Lidegaard (The Social Liberal Party), Pia Olsen Dyhr (SF), incoming Prime Minister Mette Frederiksen (Social Democrats), and Lars Loekke Rasmussen (Moderates) present the government platform for a new government in Denmark, at Marienborg in Kongens Lyngby, Tuesday, June 2, 2026. (Mads Claus Rasmussen/Ritzau Scanpix via AP)

Peder Hvelplund, Pelle Dragsted and Victoria Velasquez of the Red-Green Alliance walk after a meeting with the four parties who annonced they will form a Danish government, at the Prime Ministers residence Marienborg in Kgs. Lyngby, Denmark, Tuesday, June 2, 2026. (Nils Meilvang/Ritzau Scanpix via AP)

Naaja H. Nathanielsen of Greenlandic IA speaks to the media after a meeting with the four parties who announced they will form a Danish government, at the Prime Ministers residence Marienborg in Kgs. Lyngby, Denmark, Tuesday, June 2, 2026. (Nils Meilvang/Ritzau Scanpix via AP)

Naaja H. Nathanielsen of Greenlandic IA speaks to the media after a meeting with the four parties who announced they will form a Danish government, at the Prime Ministers residence Marienborg in Kgs. Lyngby, Denmark, Tuesday, June 2, 2026. (Nils Meilvang/Ritzau Scanpix via AP)

Acting Prime Minister Mette Frederiksen, center, waves on the royal ship Dannebrog on Monday, June 1, 2026, as the royal ship Dannebrog is docked at Odense Harbor. (Sebastian Elias Uth/Ritzau Scanpix via AP)

The U.S. stock market had its worst day since October Friday as a sell-off in big technology companies weighed down the broader market and a strong jobs report boosted expectations that the Federal Reserve will be forced to hike interest rates at some point this year.

The S&P 500 sank 2.6%, its biggest one-day drop since October 10, when the Trump administration threatened to impose a 100% tariff on imported goods from China. The losses helped push the benchmark index to its first losing week in the last 10.

The Dow Jones Industrial Average fell 1.4%, while the Nasdaq composite slumped 4.2%.

Tech stocks dragged the broader market lower as companies that had powered the S&P 500 to a series of records the past two months saw losses. Nvidia fell 6.2%, Broadcom dropped 7.9% and Micron Technology slid 13.3% for the biggest loss among stocks in the S&P 500.

Shares in Meta fell 5.5% following a published report that the social media giant may seek to do a new stock offering to raise funds for spending on AI infrastructure.

Stocks within the S&P 500 were not far from being evenly split between gainers and losers. But, many of the bigger tech stocks have pricey values that tend to have an outsized influence on the broader market.

Meanwhile, bond yields jumped after a report showed the U.S. added a surprising 172,000 jobs in May, according to the Labor Department. It is the latest report showing that employment remains solid, despite the squeeze inflation is putting on businesses and consumers.

The latest reading on employment comes two weeks before Kevin Warsh heads his first policy meeting as chair of the Fed. Policymakers are widely expected to keep rates steady at the June 16-17 meeting despite pressure from President Donald Trump to lower borrowing costs. Longer-term, the market sees a better than 60% chance the Fed will push rates higher by the end of the year, according to CME FedWatch, and little to no chance of a cut.

“Any hopes of a Fed rate cut have effectively been eliminated with this morning’s strong jobs report,” said Ronald Temple, chief market strategist at Lazard, in a research note.

The yield on the 10-year Treasury rose to 4.54% from 4.50% just before the report was released. The yield on the 2-year Treasury, which more closely tracks the Fed’s actions, jumped to 4.16% from 4.04% just prior to the report.

The Fed has been holding interest rates steady as it tries to gauge the ongoing impact from rising inflation. Prices were already ticking higher from the impact of tariffs. The U.S. war with Iran has essentially blocked crude oil shipments from moving through the Strait of Hormuz.

The price of Brent crude, the international standard, fell 2% to settle at $93.09. It was about $70 per barrel before the war. The surge in oil prices prompted a jump in gasoline prices. That has fueled a broader rise in inflation as prices for anything being shipped move higher and threaten to slow economic growth.

A measure of inflation preferred by the Fed showed that prices rose 3.8% overall in April. That marked the biggest increase in two years.

Wall Street has been anticipating that negotiations to end the war will eventually be successful. American and Iranian negotiators reached a tentative deal last week to extend their ceasefire, but the agreement has not been finalized.

The latest round of corporate earnings is coming to a close. Lululemon slumped 8.6% after trimming its revenue and profit forecasts.

Most reports from companies have been surprisingly good and helped Wall Street on its record run. Encouraging profits and forecasts helped overshadow lingering worries about the direction of the economy amid tariffs and high energy costs because of the U.S. war with Iran.

With earnings now in the background, analysts have been warning that the tech companies benefiting from interest in artificial intelligence may have become too expensive. That could result in a slowdown for a market that has surged in 2026, with the S&P 500 up 7.9% for the year.

All told, the S&P 500 fell 200.57 points to 7,383.74 on Friday. The Dow dropped 695.15 points to 50,866.78, and the Nasdaq lost 1,121.53 points to close at 25,709.43.

Markets were mixed in Europe after markets in Asia fell.

AP Business Writers Chan Ho-him and Matt Ott contributed to this report.

Specialist John McNierney, left, and trader William Lawrence work on the floor of the New York Stock Exchange, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

Specialist Anthony Matesic works at his post on the floor of the New York Stock Exchange, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

A trio of traders work on the floor of the New York Stock Exchange, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

A board above the trading floor of the New York Stock Exchange displays the closing number for the Dow Jones industrial average, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

A board above the trading floor of the New York Stock Exchange displays the closing number for the Dow Jones industrial average, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

Currency traders pass by a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, June 5, 2026. (AP Photo/Ahn Young-joon)

A screen shows South Korean companies's stock prices related to Nvidia CEO Jensen Huang, who is scheduled to visit South Korea at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, June 5, 2026. (AP Photo/Ahn Young-joon)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, June 5, 2026. (AP Photo/Ahn Young-joon)