Trump says he paused some tariffs to ‘help’ Mexico and Canada to a ‘certain extent’.

In a significant move, President Donald Trump acknowledged during a recent joint address to Congress that he had temporarily paused certain tariffs aimed at Mexico and Canada to assist these neighboring countries to 'a certain extent'. This remark comes amidst a tumultuous period in U.S. financial markets, particularly affecting the so-called 'Magnificent Seven' tech stocks, which have seen drastic declines. On Monday, shares of major players such as Nvidia, Tesla, Alphabet, Amazon, Meta, Apple, and Microsoft all faced substantial losses, with Tesla leading the downturn with a 15% drop. The sell-off has contributed to a troubling trend for the U.S. stock market, particularly for the tech-heavy Nasdaq Composite, which entered correction territory last Thursday with a 10% decline from its recent high. Investors are closely monitoring the S&P 500, which is now perilously close to entering correction status, hovering just under 2% from this threshold. Last week marked a particularly harsh moment for Nvidia, which lost $1 trillion from its record highs amid the ongoing AI boom, while Tesla's stock has plummeted by 50% since its peak last December. This volatility has raised concerns about the health of the overall market. RBC's equity strategy team has reported a concerning decrease in investor confidence, forecasting a potential drawdown of 14-20% for the S&P 500. Similarly, Morgan Stanley's Mike Wilson predicts further declines, suggesting another 5% drop could be on the horizon. As economic indicators come into focus, investors are gearing up for key inflation data this Wednesday, which could provide insights into whether the Federal Reserve will adopt a more aggressive stance to ease economic pressures. Additionally, data on job openings scheduled for release on Tuesday will shed light on the labor market, which appears to be steadier than previously feared. However, economists like Mark Zandi from Moody's have cautioned that the economic outlook is increasingly uncertain, describing the current atmosphere as 'cloudy' with potential storms brewing. In light of these events, Trump's comments reveal a stark contrast from his previous focus on the stock market as a reflection of economic health during his first term. Now, amid ongoing trade tensions and signs of potential recession, the President appears to be taking a more detached view. With the looming specter of economic decline and a volatile stock market, the implications of Trump's tariff pause and broader economic strategy will be closely scrutinized in the weeks to come. This analysis has been reviewed and critiqued by artificial intelligence to ensure accuracy and clarity. Stay tuned for more updates as the situation evolves.