Major United States benchmark averages closed lower on Monday (Tuesday AEDT), clawing back losses after President Donald Trump announced a temporary pause on tariffs against Mexico, calming investor fears.
The Dow Jones Industrial Average ended the session down 122.8 points, or 0.3%, at 44,421.9, the S&P 500 declined 0.8% to 5,994.6, while the Nasdaq Composite dropped 1.2% to 19,392.
Markets initially tumbled after Trump imposed a 25% tariff on imported goods from Canada and Mexico, along with a 10% levy on Chinese imports. The announcement triggered a broad global sell-off, impacting equities both in the U.S. and internationally.
However, sentiment improved after Mexican President Claudia Sheinbaum posted on social media about a discussion with Trump, indicating progress in negotiations.
“We had a good conversation with President Trump with great respect for our relationship and sovereignty; we reached a series of agreements,” Sheinbaum wrote on X, according to a translation from Spanish.
Trump later confirmed the temporary agreement on Truth Social, stating, “It was a very friendly conversation wherein she agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States.” He added that negotiations for a more permanent resolution would continue over the next month.
On the bond markets, 10-year and 2-year rates were at 4.531% and 4.253%, respectively.
