Following the announcement by the United States and Mexico that tariffs against the trading partner would be suspended for a month, U.S. markets quickly recovered.
After President Donald Trump imposed tariffs on a number of nations over the weekend, stocks first fell Monday, igniting concerns that a full-scale trade war would disrupt global supply lines, rekindle inflation, and slow the economy.
But as the trade war with Mexico was paused, losses were quickly disappearing.
At 157 points, or around 0.4%, the Dow Jones Industrial Average was down, a significant decrease from 665 points earlier.
Earlier, the S&P 500 fell as high as 1.93%, and then it fell 0.8%. The drop in the Nasdaq Composite was over 1%.
A 2% increase was recorded by the iShares MSCI Mexico ETF (EWW) in the meantime.
Source (CNBC)