Trump’s walkback on Mexican tariffs sends stocks on the verge of a comeback

Donald Trump's decision to walk back on Mexican tariffs has sent stocks soaring, with the S&P 500 index showing signs of a comeback. As of February 2, 2025, the S&P 500 closed at 5937.6  This reversal is a welcome relief for investors, who had been bracing for the impact of tariffs on the US-Mexico trade.

The Nasdaq Composite index also saw a significant surge, with the Invesco QQQ Trust Series 1 (QQQ) trading at $520.08 as of February 3, 2025  This uptick in stocks suggests that investors are regaining confidence in the market.

It's worth noting that Trump's initial threat of a 25% tariff on Mexican goods had sent the Mexican Peso tumbling, with a decline of over 1% in its most-traded pairs. However, with the walkback on tariffs, the market is now poised for a rebound.

https://edition.cnn.com/2025/02/03/business/tariffs-trump-imports-us/index.html