Stocks Trim Losses On Mexico Tariff Delay, Gold Extends Records, Tesla Sinks 6%: What's Driving Markets Monday?

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.

Some of the Magnificent Seven stocks remained under pressure. Tesla Inc. (NASDAQ:TSLA), Apple Inc. (NASDAQ:AAPL) and Nvidia Corp. (NASDAQ:NVDA) all faced sharp declines, by 6%, 4% and 3.8% respectively, amid concerns over worsening trade relations with China and the risk of retaliatory measures from Beijing.

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

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust (NYSE:SPY) eased 0.8% to $596.84.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) eased 0.3% to $443.77.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) fell 0.9% to $517.15.
• The iShares Russell 2000 ETF (NYSE:IWM) dropped 1.2% to $223.80.
• The Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, up 0.4%; the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 1.4%.

Monday’s Stock Movers

• Stocks moving on earnings report include Tyson Foods Inc. (NYSE:TSN), up 1.2%, IDEXX Laboratories Inc. (NASDAQ:IDXX), up 11.2%.
• Palantir Technologies Inc. (NASDAQ:PLTR), NXP Semiconductors N.V. (NASDAQ:NXPI) Equity Residential (NYSE:EQR), Clorox Company (NYSE:CLX) are among large-cap companies reporting after the close.
• Polaris Inc. (NYSE:PII) tumbled 8% after UBS slashed the stock price target from $67 to $48.

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