U.S. markets experienced a notable downturn on Monday, driven by ongoing tariff tensions. President Donald Trump announced a temporary one-month pause on the 25% tariff on goods imported from Mexico, initially intended to come into effect immediately. Despite this brief respite, the financial markets reacted with caution and concern. The Dow Jones Industrial Average saw a decline of 122.75 points or 0.28%, the S&P 500 fell 0.76%, and the Nasdaq Composite slipped 1.2%.
The announcement of tariffs has ripple effects across various sectors. Shares in auto, industrial, retail, and beverage industries were particularly affected, reflecting broader market apprehensions about the impact of these tariffs. In addition, the duty on imports from China continued to send shockwaves through the tech industry. Shares of PDD Holdings, the parent company of Temu, dropped significantly by 5.9%, while Apple saw a decrease of over 3%.
The effects of these tariffs are not limited to the stock market. The company behind Gardasil, a vaccine that prevents cancer caused by HPV, halted shipments to China due to tariff-related complications. This move underscores the wider implications of trade tensions and their ability to affect even vital healthcare products.
In media developments, Fox announced it will stream Sunday's Super Bowl 59 on its free, ad-supported service, Tubi. Acquired by Fox in 2020 for $440 million, Tubi has slowly increased its viewership and revenue. Fox executives remain optimistic about Tubi's growth potential and see this move as a strategic step to broaden its audience.
Adding to the financial news, Pfizer reported its fourth-quarter results ahead of the bell. This report is closely watched by investors for insights into the pharmaceutical giant's performance and future outlook amidst a challenging economic environment.