The major stock indexes closed lower on Monday, but partly recovered from initial steeper losses as U.S. President Donald Trump delayed tariffs on Mexico after his orders to levy tariffs on three countries sparked a global scramble to safe-haven assets earlier in the day.
Market Snapshot
The S&P 500 lost 45.96 points, or 0.76%, to end at 5,994.57 points, while the Nasdaq Composite lost 235.49 points, or 1.20%, to 19,391.96. The Dow Jones Industrial Average fell 122.75 points, or 0.28%, to 44,421.91.
Market Movers
Tesla, Rivian - Tesla was down 5.2%. The electric-vehicle maker assembles all its vehicles for the U.S. market in the country but about15% of the parts in a Model Y sold in the U.S. come from Mexico. Some come from Canada as well though how much is harder to determine. Fellow EV maker Rivian Automotive fell 1.4%.
General Motors, Ford, Stellantis, Aptiv - Shares of the traditional car manufacturers also fell but rebounded slightly after the Mexico tariff news. Millions of cars sold in the U.S. each year are assembled in Canada or Mexico. Tariffs mean higher costs for the companies and potential supply-chain issues. General Motors was down 3.2%, Ford Motor declined 1.9%, and Jeep maker Stellantis slumped 3.9%. Auto supplier Aptiv fell 2.8%.
Nvidia, Broadcom, Applied Materials - Semiconductor companies with heavy exposure to China traded lower. Trump announced over the weekend the U.S. would be imposing 10% tariffs on China imports. Nvidia fell 2.8%, Broadcom fell 1.6%, and Applied Materials slipped 0.9%.
Constellation - Constellation Brands, the distributor of imported Mexican lager like Corona and Modelo Especial, was down 3.5% at $174.41. Analysts at Piper Sandlerdowngradedshares of the company to Neutral from Overweight, and slashed their target on the price to $200 from $245.
Steel Dynamics, Nucor, Cleveland-Cliffs - Shares of domestic steel makers were mixed after trading higher earlier in the session. Steel Dynamics fell 0.2%, Nucor rose 2.2%, and Cleveland-Cliffs fell 4.9%. Tariffs would likely raise prices for foreign steel and boost pricing power for the U.S. companies.
IDEXX Laboratories - Idexx Laboratories jumped 11.1%. The veterinary technology-and-testing company reported better-than-expected adjusted earnings in the fourth quarter as revenue rose to $954.3 million from $901.6 million a year earlier.
Tyson - Tyson Foods rose 2.2%. The meat producer topped Wall Street’s fiscal first-quarter analysts’ expectations for earnings and revenue on strength in its chicken business.
Palantir - Palantir Technologies rose 1.5% ahead of its latest quarterly earnings report, which was due out after the market close.
Triumph - Triumph shares surged 33.9%. Warburg Pincus and Berkshire Partners are in advanced talks to acquire aircraft parts and services supplier Triumph Inc. for about $3 billion, including debt, according to people familiar with the matter.
Market News
US Pauses Tariffs for 30 Days on Canada and Mexico
President Donald Trump on Monday agreed to a 30-day pause on his tariff threats against Mexico and Canada as America’s two largest trading partners took steps to appease his concerns about border security and drug trafficking.
The pauses provide a cool-down period after a tumultuous few days that put North America on the cusp of a trade war that could have crushed economic growth, caused prices to soar and ended two of the United States’ most critical partnerships.
Trump Orders Creation of US Sovereign Wealth Fund, Says It Could Buy TikTok
U.S. President Donald Trump signed an executive order on Monday ordering the creation of a sovereign wealth fund within the next year, saying it could potentially buy the short video app TikTok.
If created, the sovereign wealth fund could place the U.S. alongside numerous other countries, particularly in the Middle East and Asia, that have launched similar funds as a way to make direct investments with government dollars.
Trump offered little in the way of detail and it was unclear how such a wealth fund would work. Typically such funds rely on a country's budget surplus to make investments, but the U.S. operates at a deficit. Its creation also would likely require approval from Congress.
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