01:32 PM EST, 02/03/2025 (MT Newswires) -- US equity indexes partially recovered while the dollar gave up the bulk of its gains as President Donald Trump announced a delay in punitive trade policies against Mexico by a month.

The Nasdaq Composite fell 1.2% to 19,400.9, the S&P 500 slid 0.7% to 5,997.3, and the Dow Jones Industrial Average retreated 0.2% to 44,452.5 after midday on Monday. All three indexes were off their session lows. Technology, consumer discretionary, and industrials led the steepest decliners intraday. Healthcare and consumer staples were among the gainers.

Trump said he and Mexican President Claudia Sheinbaum agreed during a call Monday to postpone the tariffs after Sheinbaum agreed to send 10,000 soldiers to Mexico's border with the US to stop the fentanyl flow and movement of illegal migrants.

"We further agreed to immediately pause the anticipated tariffs for a one-month period, during which we will have negotiations headed by Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, and Secretary of Commerce Howard Lutnick, and high-level Representatives of Mexico," Trump said in a post on X.

The US announced it will impose 25% tariffs on goods imported from Mexico and Canada, along with a 10% levy on China, triggering concern that a global trade war could ensue because of retaliation from affected countries. The White House said energy imports from Canada would attract a 10% duty. The tariffs would become effective on Tuesday.

The CBOE's Vix index was up 13% to 18.51 intraday, following premarket declines of over 30%.

The US dollar index was off intraday highs, trading up 0.5% compared with a surge pre-bell of about 1.1%.

US Treasury yields were mixed intraday, with the benchmark 10-year down 4.2 basis points to 4.53% while the two-year stood little changed at 4.25%.

Gold futures traded 0.8% higher at $2,857.09 an ounce after touching a new record high of 2,872.00 earlier in the session.

In economic news, the Institute for Supply Management's US manufacturing index rose to 50.9 in January from 49.2 in December, compared with expectations for 49.9 in a survey compiled by Bloomberg.

"US manufacturing activity expanded in January after 26 consecutive months of contraction," Timothy Fiore, chair of the ISM Manufacturing Committee, said. "Demand clearly improved, while output expanded, and inputs remained accommodative."

The S&P Global US manufacturing index for January was revised upwards to 51.2 from the flash reading of 50.1, compared with expectations for no revision in a survey compiled by Bloomberg. The January index stands above 49.4 in December, suggesting expansion after indicating contraction for seven consecutive months.

In company news, Idexx Laboratories ( IDXX ) reported Q4 earnings and revenue that beat the market's expectations. Shares were up 11% intraday, the top performer on the S&P 500 and the Nasdaq.

West Texas Intermediate crude oil futures rose 0.3% to $72.76 a barrel.