U.S. stocks tumbled after President Trump confirmed that he would impose a 25% levy on Canadian and Mexican goods.

The technology-heavy Nasdaq Composite slid 2.6%, leading declines among the three major indexes. The Dow industrials fell 1.5%, or about 650 points.

The tariffs on Canada and Mexico are slated to start Tuesday. Hours ahead of the deadline, Trump dashed investors' hopes for a last-minute reprieve, telling reporters that there was "no room left" for negotiations.

New data released Monday morning showed U.S. manufacturers' supply costs jumped in February, as Trump's tariff threats raised the specter of higher inflation.

While U.S. markets slumped, European stocks rallied, pushing the pan-continental Stoxx Europe 600, the UK's FTSE 100 and Germany's DAX to fresh records.

Some of the biggest gainers were defense stocks, which surged after the region's leaders talked up military spending. European governments are scrambling to put together a Ukraine-Russia peace plan in the wake of Trump's rancorous meeting with Ukraine's president on Friday.

In Monday's session:

U.S. stock indexes sank. The S&P 500 fell 1.8% on the day. After Monday's decline, the Nasdaq was down about 9% from its record closing high in December.

Benchmark 10-year Treasury yields fell to 4.178%. On Friday, yields settled at 4.228%, after their steepest one-month decline in more than a year.

The U.S. dollar weakened against the euro and the U.K. pound. Bitcoin retreated to around $86,000, erasing most of its gains from a Sunday rally prompted by Trump's comments on creating a U.S. strategic crypto reserve.

European stocks outperformed, helped by defense companies including BAE Systems and Thales, both of which gained more than 14%. We will see what the follow through from Wall Street is like today in Europe.

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Member request: Following your request for an analysis of ASML, please find the historical review attached as a PDF. While we recognize significant long-term upside potential, we are currently hesitant to recommend investment. The escalating trade war presents considerable uncertainty and potential downstream risks. Furthermore, recent concerns regarding chip exports to China, involving companies like NVDA, could lead to future sanctions affecting ASML. In our assessment, the current risk profile outweighs the potential rewards. We believe NVDA, post-correction, offers a more favorable investment opportunity.
Active Trading Portfolio: "GOOD MORNING TRADERS! Let's kick things into high gear! We smashed it yesterday, grabbing a quick €156 profit on EUR.GBP in just 12 hours – DONE and DUSTED! (Remember, your profit scales with your trade size.) Now, get ready, because we're diving back in! Here's the play:
Spread Betting:
- Buy Limit: 8250 (Day Order)
- Profit Target: 8260
- Stop Loss: 8243
IBKR CFDs:
- Buy Limit: 0.82500 (Day)
- Sell Limit: 0.82600 (GTC)
- Stop Loss: 0.82430 (GTC)
Important Note: We may not get filled on this order, and that's perfectly fine. Remember, let the trade come to you. Don't chase it! You can place these parameters and walk away from your screen. All trades will be entered automatically.
Contact me if you need any assistance.
LET'S MAKE IT HAPPEN! Happy Trading!" Check Out the Active Trading Portfolio.
Option Trading Portfolio: Regarding our SPY financed Bear Put Spread: Yesterday's market decline has temporarily impacted the trade due to time premium in the options. However, if SPY were to settle at its current level on March 21st, the trade would be profitable. I am closely monitoring SPY and may consider selling the long $580 put in the near term to potentially enhance gains. This would only occur after observing market stabilization. No immediate action is required. Check Out the Option Trading portfolio.
Buy and Hold Portfolio: Our long-term buy-and-hold portfolio has achieved a 7% year-to-date return, outperforming the broader market indexes. We are evaluating eight additional stocks for potential inclusion in the portfolio. Please refer to our Buy and Hold Portfolio for details. We will provide an update upon the completion of our stock selection. Check out out the Buy and Hold Portfolio.