U.S. stocks initially plummeted due to President Trump's tariffs on Canada, Mexico, and China, but recovered partially after Mexico agreed to strengthen its border security in exchange for a one-month tariff pause. The global sell-off saw losses in European and Asian markets as well, with investors flocking to safe-haven assets like U.S. government bonds.
U.S. stocks initially plunged in a global sell-off triggered by President Donald Trump's tariffs on Canada, Mexico, and China, raising fears of a trade war . However, losses moderated after Mexico agreed to strengthen its border security in exchange for a month-long pause on tariffs. This news sent investors seeking refuge in U.S. government bonds, resulting in a decline in benchmark Treasury yields.
The Dow Jones Industrial Average experienced a slight increase, while the S&P 500 and Nasdaq Composite both suffered losses. European and Asian markets also took a hit, with automakers leading the decline in Europe. Emerging market stocks also fell sharply. Short-term Treasury yields rose amid concerns about inflation stemming from the tariffs, while long-term yields dropped as investors sought safe havens. The dollar initially strengthened but later weakened against a basket of world currencies following the Mexico tariff pause. Oil prices rebounded after the initial dip, and gold reached a record high as investors sought safe-haven assets amidst tariff anxieties. Meanwhile, U.S. economic data showed positive signs with manufacturing activity expanding for the first time since October 2022 and a rebound in residential construction spending. However, experts cautioned that these positive reports could lead the Federal Reserve to delay rate cuts due to concerns about inflation
TRADE WAR TARIFFS MEXICO STOCK MARKET GLOBAL ECONOMY INVESTORS
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