LIVE MARKETS-US indexes trade down, but pare losses; take stock of tariff talk

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U.S. INDEXES TRADE DOWN, BUT PARE LOSSES; TAKE STOCK OF TARIFF TALK

In the wake of a rough open, Wall Street's main indexes ended down, but well off their worst levels, after U.S. President Donald Trump delayed new tariffs on Mexico. His orders to levy steep tariffs on Canada, Mexico, and China sparked a global scramble to safe-haven assets earlier in the day.

Indeed, the Dow .DJI fell as much as 1.49%, the S&P 500 .SPX slid as much as 1.93%, and the Nasdaq composite .IXIC tumbled as much as 2.48%.

However, similar to last Monday's DeepSeek driven opening rout, the indexes stabilized within the first hour of the trading day and mounted recoveries. This after news that Mexico, and the U.S. reached a deal to delay tariffs for one month.

By the close, the Nasdaq ended down 1.2%, the SPX finished off 0.76%, and the Dow closed off 0.28%.

"Mexico has reached a deal, and I think people are hopeful Canada will reach some sort of a deal," said Chip Rewey, CIO at Rewey Asset Management.

Still, a majority of S&P 500 sectors finished lower with tech .SPLRCT, consumer discretionary .SPLRCD, and industrials .SPLRCI all ending off more than 1% each. Staples .SPLRCS posted the biggest rise.

Under the surface, small caps .RUT, chips .SOX, regional banks .KRX and transports .DJT were among weaker groups. Gold stocks .HUI outperformed.

Here is Monday's closing snapshot:

(Terence Gabriel, Caroline Valetkevitch)

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FOR MONDAY'S EARLIER LIVE MARKETS POSTS:

STRATEGISTS WEIGH TARIFF IMPACT AS PICTURE CHANGES QUICKLY - CLICK HERE

SO GOES JANUARY, SO GOES THE YEAR? - CLICK HERE

MONDAY DATA: PMI RETURNS TO EXPANSION, RESIDENTIAL CONSTRUCTION REBOUNDS - CLICK HERE

NASDAQ SLIDES AS TRUMP LEVIES TARIFFS, AS PROMISED - CLICK HERE

TRADERS CHECK THEIR CHARTS AS THEY BRACE FOR ANOTHER MONDAY MORNING ROUT - CLICK HERE

DRINK UP! TARIFF IMPLICATIONS FOR EUROPE'S BEVERAGE MAKERS - CLICK HERE

WHAT IF THE U.S. REAL TARGET IS JUST CHINA? - CLICK HERE

MEANWHILE, EARNINGS REMAIN REASSURINGLY CALM - CLICK HERE

SOME SIMULATIONS ON POSSIBLE FOREX MOVES - CLICK HERE

TRUMP TARIFFS SEND STOXX LOWER; AUTOS SECTOR LAGS - CLICK HERE

EUROPE BEFORE THE BELL: TRADE WAR UNDERWAY - CLICK HERE

TRUMP TARIFF REALITY UNNERVES MARKETS - CLICK HERE

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)