Global markets are collapsing again: SP 500 enters 'bear territory' amid tariffs from Trump.

Global financial markets plunged sharply on Monday, and the S&P 500 officially entered 'bear territory', having fallen 20% from its February peak. The cause of this collapse was the fallout from the trade war initiated by U.S. President Donald Trump through tariff policies.

The S&P 500 opened down over 3% on the New York Stock Exchange, marking the official entry into 'bear territory'. The Nasdaq, a technology index that was already in 'bear territory', lost nearly 4% at the start of trading, while the Dow Jones industrial index fell by about 3%.

President Trump announced on social media that the U.S. is negotiating with countries around the world and setting 'strict but fair parameters'.

Analysts at Deutsche Bank stated that there are currently no signs of a bottom being established in the markets or any start of stabilization.

European markets also experienced sharp declines: the German DAX lost nearly 10% after opening, but managed to reduce losses. The pan-European Stoxx 600 index lost over 4%. Asian markets suffered even greater losses: the main index of Hong Kong fell by 13%, while the Taiwanese tech market lost 10% of its value.

The European Union proposed to the United States zero-for-zero tariffs on cars and industrial goods. Oil prices temporarily dipped below $60 a barrel.

White House officials stated that the president's tariff methodology is sound, and the administration has received proposals from about 50 countries regarding possible agreements.

Economic forecasters predict significant negative consequences from this situation. Analysts at J.P. Morgan anticipate that the U.S. economy could shrink by 0.3% this year, while unemployment may rise to 5.3%.

Chief market strategist at BMO Private Wealth, Carol Schleif, noted that the past few days have been turbulent, but the market's recalibration to unusual events can be quick and brutal. Volatility has increased as stocks were valued at record highs in February.

Chinese leadership stated it is prepared for a prolonged trade war with the United States and believes the country can emerge stronger from this situation while safeguarding the principles of fair trade.