NEW YORK, Feb. 3 (Xinhua) -- U.S. stocks ended lower on Monday, as investors reacted to the Donald Trump administration's planned tariff rollout.
The Dow Jones Industrial Average fell 122.75 points, or 0.28 percent, to 44,421.91. The S&P 500 sank 45.96 points, or 0.76 percent, to 5,994.57. The Nasdaq Composite Index shed 235.49 points, or 1.20 percent, to 19,391.96.
Six of the 11 primary S&P 500 sectors ended in red, with technology and consumer discretionary leading the laggards by losing 1.80 percent and 1.35 percent, respectively. Meanwhile, consumer staples and utilities led the gainers by going up 0.68 percent and 0.46 percent, respectively.
The tariffs, originally set to take effect Tuesday, include 25 percent duties on goods from Canada and Mexico and 10 percent on Chinese imports, with Canadian energy imports facing a reduced 10 percent rate.
After a Monday morning call with Mexico's President Claudia Sheinbaum, Trump agreed to postpone tariffs on Mexican imports for a month following Sheinbaum's commitment to deploying troops at the border to curb fentanyl trafficking and illegal immigration.
Later on Monday, Trump said the tariffs on Canada announced on Saturday "will be paused for a 30 day period" to see whether or not a final economic deal with Canada can be structured.
U.S. major indexes narrowed losses in the morning session thanks to the latest development.
"This is a very fluid and evolving situation," said Victoria Greene at G Squared Private Wealth. "For now, our baseline thesis is the bulk of these are transitory and likely more watered down with concessions. We are on top of developments and watching how this may affect earnings, the U.S. dollar and inflation."
While concerns persist over potential price hikes and economic strain, Wells Fargo Investment Institute noted Monday that the administration's "targeted and gradual approach" aims to mitigate disruptions to U.S. growth.
Paul Christopher, head of global investment strategy at the institute, emphasized that services remain the primary economic driver, while the industrial sector continues to struggle with weak pricing power amid a manufacturing downturn.
"It's probably going to take several quarters to have a noticeable impact," Christopher said. "You could eventually see some higher prices, but not right away."
