Bonds & Stocks
Stocks came well off session lows after President Donald Trump confirmed he agreed with Mexican President Claudia Sheinbaum on an immediate pause of anticipated tariffs for one month, spurring a quick rebound of the peso.
Following a slide that approached 2% earlier Monday, the S&P 500 dropped 0.6%. The yield on 10-year Treasuries declined three basis points to 4.50%.
Economy
US factory activity expanded last month for the first time since 2022 as orders ramped up and production quickened, pointing to a brighter manufacturing outlook.
The Institute for Supply Management’s manufacturing gauge rose 1.7 points in January to 50.9, the highest since September 2022, according to data released Monday.
World
President Donald Trump agreed to delay 25% tariffs against Mexico for one month after a conversation with his counterpart Claudia Sheinbaum on Monday, a dramatic turnabout with the neighboring nations on the brink of a trade war.