Wall Street slips as tariff jitters weigh on markets

U.S. stocks ended lower on Monday as investors reacted to the 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 dropped 45.96 points, or 0.76 percent, to 5,994.57. The Nasdaq Composite Index slid 235.49 points, or 1.20 percent, to 19,391.96.

Six of the 11 primary S&P 500 sectors closed in the red, with technology and consumer discretionary leading the declines, down 1.80 percent and 1.35 percent, respectively. Meanwhile, consumer staples and utilities led the gainers, rising 0.68 percent and 0.46 percent, respectively.

The tariffs, originally set to take effect on 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 assess whether a final economic deal with Canada can be structured.

Read more: U.S. tariff move sparks criticism, concern worldwide 

U.S. major indexes pared losses in the morning session following the latest developments.

"This is a very fluid and evolving situation," said Victoria Greene of G Squared Private Wealth. "For now, our baseline thesis is that the bulk of these are transitory and likely to be 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 on 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."