04:29 PM EST, 02/03/2025 (MT Newswires) -- US benchmark equity indexes closed lower Monday, but pared losses from earlier in the session after President Donald Trump paused new tariffs on Mexico.

The Nasdaq Composite closed 1.2% lower at 19,392, while the S&P 500 fell 0.8% to 5,994.6. The Dow Jones Industrial Average dropped 0.3% to 44,421.9. Technology saw the steepest decline among sectors, while consumer staples led the gainers.

The Trump administration on Saturday announced 25% tariffs on goods from both Canada and Mexico, along with a 10% levy on imports from China. However, Trump said Monday that the US will pause the announced tariffs on Mexico for one month as the two sides engage in negotiations.

Apple ( AAPL ) shares slid 3.4%, the steepest decline on the Dow. Nvidia ( NVDA ) , Goldman Sachs ( GS ) and Caterpillar ( CAT ) were among the worst performers on the Dow. Electric vehicle maker Tesla (TSLA) shares decreased 5.2%, the second-biggest drop on the Nasdaq and among the worst on the S&P 500.

Trump signaled over the weekend that tariffs on the European Union will be implemented next.

The Trump administration's tariff plans are likely to prompt Americans to brace for higher prices on various items such as vegetables, cars and liquor, Stifel said in a Monday note.

The US 10-year yield dropped 3.2 basis points to 4.54%, while the two-year rate rose 1.3 basis points to 4.25%.

In economic news, the US manufacturing sector rebounded in January as demand conditions improved, two separate surveys showed. Data from the Institute for Supply Management indicated an expansion for the first time in more than two years. S&P Global ( SPGI ) said its manufacturing purchasing managers' index moved back above the 50 mark for the first time in seven months.

"Business confidence about prospects for the year ahead has leaped to the highest for nearly three years," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.

West Texas Intermediate crude oil rose 0.5% to $72.88 a barrel.

Atlanta Fed President Raphael Bostic said he wants to wait "a while" before easing monetary policy again following last year's interest rate cuts amid uncertainty over the US economy this year, Bloomberg News reported.

In company news, IDEXX Laboratories ( IDXX ) shares jumped 11%, the best performer on the S&P 500 and the Nasdaq, after the company delivered a fourth-quarter beat.

Tyson Foods ( TSN ) lifted its full-year revenue growth outlook as the meat producer reported better-than-expected fiscal first-quarter results, buoyed by volume and price gains. The company's shares increased 2.2%.

Some 36% of S&P 500 companies have reported quarterly results so far this season, with earnings up 7.4% year over year on 4.5% sales growth, Oppenheimer Asset Management said. Before the reporting season's start, Bloomberg put analysts' projected bottom-line growth at 7.3%, according to the report.

Roughly 131 companies are expected to report results this week, including mega-caps Amazon.com ( AMZN ) and Alphabet (GOOG, GOOGL).

Gold rose 0.8% to $2,857.60 per troy ounce, while silver added 0.7% to $32.51 per ounce.