US Stocks Fall Amidst Tariffs on Canada, China

Amidst concerns over the Trump administration's planned tariffs on Canada and China, US stocks experienced a downturn on Monday. However, the major averages pared significant losses after President Trump announced a one-month delay in duties on Mexican imports.

Tech Sector Declines Sharply

The tech-heavy Nasdaq Composite (^IXIC) closed 1.2% lower, while the S&P 500 (^GSPC) dropped approximately 0.7%. The Dow Jones Industrial Average (^DJI) fell 0.3%, erasing earlier session losses. Consumer discretionary (XLY) stocks, including automakers, were hit by fears of tariff impacts. Tech (XLK) also underperformed as shares of NVIDIA (NVDA), Apple (AAPL), and Tesla (TSLA) all fell over 2.5%.

Tariffs on Hold for Mexico

Initially set to take effect on Tuesday, the tariffs included 25% duties on Canada and Mexico, and 10% on China. Following a phone call with Mexican President Claudia Sheinbaum, Trump announced a one-month delay in tariffs on Mexico after Sheinbaum agreed to deploy soldiers to the border to curb the flow of fentanyl and illegal migrants into the US.

Canada and US Negotiate

Investors hoped for a similar deal with Canada as President Trump and Prime Minister Justin Trudeau held a phone call on Monday afternoon. Trudeau stated that Canada will impose retaliatory tariffs on around $107 billion in American-made products.

Dollar on the Rise

The US dollar index (DX-Y.NYB, DX=F) declined slightly after an earlier surge to its highest levels in two years.

Oil Prices Fluctuate

West Texas Intermediate futures (CL=F) pared gains after jumping over 2%.

Automakers Slide

Auto stocks fell on Monday following the announcement of tariffs on goods from Canada and Mexico. The tariffs, set to take effect on Tuesday, will include 25% duties on Canada.

Homebuilding Industry Concerns

Major homebuilder stocks underperformed the broader market as investors digested the tariff news. Concerns over rising construction costs due to tariffs on Canada and Mexico were expressed by the National Association of Home Builders (NAHB).

Gold Reaches All-Time High

Gold (GC=F) touched new highs as investors flocked to the safe haven amidst tariff war concerns.