Market Shock: U.S. Tariffs Shake Global Stocks While Euro Ascends

U.S. stocks fell after President Trump announced new tariffs on Canada and Mexico. Euro strengthened as European leaders drafted a Ukraine peace plan. Bitcoin dropped following Trump's comments on digital assets. U.S. economic data signaled potential economic challenges, affecting global markets and leading to speculation on interest rate cuts.

U.S. stocks plummeted Monday, with the S&P 500 experiencing its most significant daily percentage decline since December 18. President Donald Trump announced a 25% tariff on Canada and Mexico, igniting market jitters. The euro, conversely, gained strength as European leaders convened to create a peace initiative for Ukraine.

Shares of major U.S. automakers dropped, notably General Motors, which fell 3.6%. In addition, disappointing U.S. economic data reflected manufacturing steady in February, but a rise in factory gate prices suggested looming difficulties due to new tariffs.

Bitcoin, after weekend gains, fell amidst Trump's hints at including cryptocurrencies in a U.S. strategic reserve. Longer-term U.S. Treasury yields softened, and the Dow Jones and Nasdaq suffered sharp declines amid broader market uncertainty.