US equity indexes pared losses after midday on Monday amid reports that the Trump administration will delay its punitive trade policies against Mexico by a month.
The Nasdaq Composite dropped 1.2% to 19,394.1, with the S&P 500 down 0.8% to 5,995.2 and the Dow Jones Industrial Average 0.4% lower at 44,255.4. All three indexes were off their respective sharp premarket lows. Technology, consumer discretionary, and industrials were among the steepest decliners intraday. Healthcare and consumer staples were among the trio of gainers.
President Donald Trump reportedly delayed the implementation of tariffs on imports from Mexico following a call with his counterpart, President Claudia Sheinbaum. Sheinbaum is said to have agreed to send soldiers to Mexico's border with the US to stop the fentanyl flow and movement of illegal migrants.
The US announced plans to impose 25% tariffs on goods imported from Mexico and Canada, along with a 10% levy on China late on Friday, triggering concern that a global trade war could ensue because of retaliation from affected countries. Energy imports from Canada were slapped with a 10% duty. The tariffs would become effective on Tuesday.
The CBOE's Vix index was up 13% to 18.56, giving up premarket declines of over 30%.
The US dollar index was also off intraday highs, trading up 0.6% compared with a surge pre-bell of about 1.1%.
US Treasury yields were mixed intraday, with the benchmark 10-year down 4.2 basis points to 4.52% while the two-year stood little changed at 4.25%.
Gold futures traded 0.8% higher at $2,849.11 an ounce after touching a new record high of 2,872.00 earlier in the session.
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