If there's one thing the stock markets like, it's stability, and that's proving as true as ever as they react negatively to newly elected President Donald Trump's tariffs on Mexico and China and then quick freeze on at least part of them.
The S&P 500 was down around 1.7 percent before markets opened on Monday, and the Nasdaq was almost 2 percent lower.
The DOW plunged more than 600 points before trading began on Monday.
This comes after Trump announced a 25% tariff on Canadian and Mexican goods and 10% on China. He then quickly froze the tariffs after the president of Mexico said she agreed to send 10,000 troops to the border to battle the flow of fentanyl and illegal migration to the U.S.
But news of tariffs had markets and businesses and consumers bracing for higher prices on everything from gas to groceries.
Daily Mail reported that U.S. carmakers, with close ties to suppliers in Mexico and Canada, led Wall Street's early losses, with GM and Ford down 6 and 4 percent respectively.
However, with news tariffs had been frozen on Mexico, things started to rebound in the markets. As of mid-day on Monday, the DOW had recovered enough to be 140 points, a big improvement over numbers early in the day.
"Call us deluded, but we still think that permanent tariffs on the U.S.'s allies (Canada, Mexico) will not be a thing," Thierry Wizman, global FX and rates strategist at Macquarie, told CNBC.
