Wall Street bounced back after President Donald Trump and Mexican President Claudia Sheinbaum agreed to a one-month suspension of tariffs following Mexico's pledge to bolster its military presence at the northern border.
Earlier on Monday, markets had been rattled by Trump’s announcement of sweeping tariffs — 25% on all imports from Mexico and Canada and 10% on Chinese goods. The prospect of escalating trade tensions led to sharp early session declines.
The temporary tariff reprieve on Mexico has fueled speculation that Trump may be using tariffs as a negotiation tool rather than a definitive policy, potentially easing concerns they will remain in place if U.S. demands — centered on immigration and drug trafficking — are met.
Trump is set to speak with Canadian Prime Minister Justin Trudeau at 3 p.m. ET.
By midday in New York, the S&P 500 and Nasdaq 100 were down 0.8%, trimming earlier losses, while the Dow nearly erased its decline entirely, reflecting renewed investor confidence in industrial and less tech-sensitive stocks.
In fixed income, long-term Treasury yields edged lower, while the U.S. dollar trimmed its early session gains. The Mexican peso rebounded sharply, rising over 1% by 12:30 p.m. ET, recovering from overnight losses of up to 2%.
Commodity markets experienced turbulence. Natural gas prices soared 11% on Monday, surpassing $3 per million British thermal units, while oil climbed 0.8%.
Safe-haven demand remained strong, with gold rallying 0.8% to a record high of over $2,810 per ounce.
Bitcoin (CRYPTO: BTC) surged back to $99,000 following news of the U.S. pause on Mexico tariffs.
Monday’s Performance On Major US Indices, ETFs
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Monday’s Stock Movers
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