President Trump and geopolitics are setting the agenda for markets at the start of the week.
Investors are braced for more last-minute wrangling between the U.S. and its trading partners, with a 25% levy on Canadian and Mexican goods slated to start Tuesday. Commerce Secretary Howard Lutnick said Sunday that President Trump hasn’t decided yet whether to go ahead.
The S&P 500 and Nasdaq Composite fell Monday morning. New data showed U.S. manufacturers’ supply costs jumped in February, as Trump’s tariff threats raise the specter of higher inflation.
U.S. stock indexes mostly fell. The Dow industrials were little changed, but the S&P 500 and the Nasdaq declined. All three major indexes rallied Friday, ending a tough month on a strong note.
Benchmark Treasury yields fell below 4.2%. 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 traded around $90,000, leveling off after a Sunday rally prompted by Trump’s comments on a U.S. strategic reserve. Crypto-linked stocks such as Coinbase and MicroStrategy rose in morning trading.
European stocks outperformed, helped by defense names including BAE Systems and Thales, both of which were up more than 15%.