US Stocks Dive on Tariff News

Overview:

US stocks experienced a significant decline on Monday in reaction to President Trump's announcement of tariffs on China, Mexico, and Canada. However, the major averages pared their losses after Trump stated that the US would delay tariffs on imports from Mexico by a month.

Indices:

* Nasdaq Composite (^IXIC): Down 0.91%
* S&P 500 (^GSPC): Down 0.55%
* Dow Jones Industrial Average (^DJI): Down 0.10%

Sectors and Companies:

* Consumer discretionary stocks (XLY), including automakers, faced significant declines due to concerns about tariff impacts.
* Tech stocks (XLK) also lagged, with shares of Nvidia (NVDA), Apple (AAPL), and Tesla (TSLA) falling.

Tariffs:

* Initially set to take effect on Tuesday, the tariffs included 25% duties on Canada and Mexico and 10% on China.
* Following a call with Mexico's President Claudia Sheinbaum, Trump announced that tariffs against Mexico would be delayed by a month after Sheinbaum agreed to send soldiers to the border to curb the flow of fentanyl and illegal migrants.

Currency:

* The US dollar (DX-Y.NYB, DX=F) experienced a surge, trading near its highest levels in two years.
* The Canadian dollar (CADUSD=X) fell to its lowest level against the US dollar since 2003, and the Mexican peso (MXNUSD=X) reached an almost three-year low.

Oil:

* West Texas Intermediate (CL=F) futures remained relatively flat, reversing an earlier jump of over 2%.

Market Reactions:

* Markets reacted negatively to the initial tariff announcement, but the delay of tariffs on Mexico provided some relief.
* Economists and investors expressed concerns about the long-term impact of tariffs on trade and the economy.

Additional Developments:

* Gold (GC=F) reached an all-time high as investors sought safe havens amid the trade war concerns.
* Canadian Prime Minister Justin Trudeau stated that Canada would impose 25% counter-tariffs on $107 billion worth of American products.
* Experts suggested that the tariffs on Canada and Mexico may be intended to enhance US leverage in trade negotiations.