Tariff Turbulence: U.S. Markets Brace for Impact

U.S. President Trump delayed tariffs on Mexico, influencing Wall Street markets. Main indexes showed varied reactions amid concerns on tariffs from Mexico, Canada, and China. Tech stocks faced downturn due to DeepSeek's AI breakthrough. Investors leaned towards safer assets. Some minor recoveries noted in the S&P sectors.

Wall Street experienced a mixed session as President Donald Trump's decision to delay tariffs on Mexico influenced market sentiments. The delay came after Mexico agreed to bolster its borders to curb illegal drug flow, easing immediate trade tensions.

Tariffs on Mexico, alongside existing ones on Canada and China, have created market uncertainty. "Trump is serious about using tariffs as a tool," said Carol Schleif of BMO Family Office, adding that European markets may be targeted next. Citi analysts warn of potential market declines and rising inflation.

At market close, the Dow Jones saw a minor increase, while the S&P 500 and Nasdaq experienced losses. Defensive sectors led gains, but tech stocks slumped post DeepSeek's AI announcement. Investors sought safety in bonds and gold, with the latter reaching record highs.