*

S&P 500, Nasdaq and Dow all close lower

*

US and Canada to talk about tariffs later this week

*

Treasury yields turn around as does gold

*

Oil prices settle slightly higher

(Updates with U.S. stock market close)

By Sinéad Carew and Alun John

NEW YORK/LONDON, March 11 (Reuters) - Ukraine's

acceptance of a U.S. proposal for a ceasefire with Russia

briefly pushed the euro to a five-month high while equities fell

in Tuesday's choppy session as investors worried about a lack of

clarity on tariffs.

The euro added to earlier gains and European stock futures

pared some losses after Ukraine agreed to an immediate 30-day

ceasefire during talks with U.S. officials in Saudi Arabia.

However, Russia has not yet responded to the proposal.

While the Ukraine news helped U.S. stock indexes end Tuesday

well above their session lows, traders were having to make

decisions amid dizzying changes on trade.

Earlier on Tuesday, President Donald Trump added to economic

jitters by saying he told his commerce secretary to add an

additional 25% tariff on all steel and aluminum imports from

Canada, bringing the total tariff on those products to 50%.

But the U.S. appeared to have reversed that decision by late

afternoon after the premier of Canada's Ontario province said he

was suspending plans to impose a 25% surcharge on electricity

exports to the United States and would fly to Washington this

week for talks with the Trump administration.

"Uncertainty and volatility continue in this market," said

Mona Mahajan, head of investment strategy at Edward Jones,

pointing to tariff announcements and resulting economic

concerns.

"Economic growth had started to slow even before the tariff

uncertainty in the U.S. That is not uncommon in the first

quarter of the year, but what is uncommon is adding to that with

uncertainty around policy."

On Monday, the S&P 500 had suffered its biggest

one-day drop this year after Trump, in a weekend Fox News

interview, declined to rule out a recession resulting from his

trade policies.

Adding to concerns, Tuesday's data showed U.S.

small-business confidence dropped for a third straight month in

February, wiping away much of the gains notched after Trump's

November election victory.

Investors were also anxiously awaiting the latest

information on inflation conditions from the U.S. consumer price

index reading for February, due on Wednesday.

A high reading would add to last month's

hotter-than-expected data, which included the biggest monthly

price gain since August 2023.

After a choppy session, in which it briefly went 10% below

its latest record-high close, the S&P 500 closed down

42.49 points, or 0.76%, at 5,572.07 while the Nasdaq Composite

finished off 32.23 points, or 0.18%, at 17,436.10.

The Dow Jones Industrial Average lost 478.23 points,

or 1.14%, to close at 41,433.48.

MSCI's gauge of stocks across the globe fell

6.09 points, or 0.73%, to 826.64, which was roughly 7% below its

most recent record high close on February 19.

European stock futures briefly pared

losses after the Ukraine ceasefire proposal.

Earlier, the pan-European STOXX 600 index had

closed down 1.7%.

After falling sharply on Monday, U.S. Treasury yields also

steadied, pulling away from five-month lows hit earlier in the

session.

The yield on benchmark U.S. 10-year notes rose

6.7 basis points to 4.28%, from 4.213% late on Monday.

The 2-year note yield, which typically moves in

step with interest rate expectations for the Federal Reserve,

rose 5.5 basis points to 3.951%, from 3.896% late on Monday.

In currencies, the euro briefly hit a five-month high after

the Ukraine agreement, while the dollar rose to a one-week high

before weakening against the Canadian dollar on the tariff news.

The euro was up 0.71% at $1.0909, while against the

Japanese yen the dollar strengthened 0.38% to 147.82.

The Canadian dollar was up 0.06% versus the greenback

to C$1.44 per dollar.

Oil prices rose, after falling sharply on Monday. Concerns

about a U.S. recession and the impact of tariffs on global

economic growth capped gains.

U.S. crude settled up 0.33% at $66.25 a barrel and

Brent settled at $69.56 per barrel, up 0.4%.

Gold prices gained after selling off in the prior day's

session. Spot gold rose 0.92% to $2,915.86 an ounce. U.S.

gold futures rose 0.88% to $2,916.50 an ounce.