Wall Street pared its losses after Mexican President Andrés Manuel López Obrador announced a one-month delay in US tariffs on Mexican imports. The news eased concerns about a potential trade war, leading to a rebound in the stock market. However, earlier in the day, indices experienced significant drops, with Big Tech and companies sensitive to higher interest rates bearing the brunt of the losses. Investors remain cautious about the long-term implications of the trade tensions and are now anticipating further developments in the negotiations.
NEW YORK — Wall Street is paring its losses after Mexico’s president said the United States will delay its tariffs on Mexican imports by a month, easing some of the worries about a potential trade war. The S&P 500 was down 0.7% in Monday morning trading after being down as much as 1.9% earlier. The Dow Jones Industrial Average trimmed its loss from 665 points to 162, while the Nasdaq composite fell 1%.
Traders on Wall Street are paring expectations for how many cuts to interest rates the Federal Reserve may deliver this year, if any. Lower interest rates can encourage U.S. employers to hire more workers, while also goosing prices for investment, but the downside is they can give inflation more fuel.
Among all the uncertainties upsetting Wall Street was the basic question of how Trump would decide whether and when Canada, China and Mexico are doing enough to lift the tariffs.Constellation Brands, the company that sells Modelo and Corona beers in the United States, fell 2.1%. Automakers, which import heavily from Mexico, also sank. General Motors dropped 1.3%. Best Buy, which sells electronics made around the world, lost 2.5%.
TRADEWAR TARIFFS WALL STREET STOCK MARKET MEXICO FEDERAL RESERVE
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