Investors weighed the U.S.’ decision to pause tariffs on Mexico and Canada on Monday, Feb. 3. The S&P 500 slipped 0.8%, trimming its year-to-date gain to 2.1%; the Nasdaq composite dropped 0.2%; and the Dow Jones Industrial Average dipped 0.3%, with a robust year-to-date gain of approximately 5%.

In the bond market, 10-year Treasury yields rose to 4.6%, while the 2-year yield climbed to 4.3%, driven by tariff-related inflation concerns.

U.S. stocks rallied on Tuesday due to trade uncertainties and better investor sentiment. While markets remained cautious, the S&P 500, the Nasdaq, and the Dow gained 0.7%, 1.4%, and 0.3%, respectively.

As concerns about trade wars eased, emerging markets stocks and currencies posted strong performance. Wednesday witnessed a modest surge in U.S. stocks as investors shifted focus from trade to economic data.

The S&P 500 rose 0.4%, the Nasdaq edged up 0.2%, the Treasury gained 0.7%, and the Dow gained 0.7%. Yields declined significantly, with the 10-year yield falling 8.9 basis points to 4.4%, marking its lowest level since December 2024.

U.S. stocks closed mixed on Thursday as investors saw a wave of corporate earnings. The S&P 500 edged up 0.4%, while the Nasdaq advanced 0.5% due to strong performances in the technology sector.

However, the Dow slipped 0.3% and small-cap stocks lagged. On the currency front, the dollar continued its rise, edging up 7% since its September 2024 lows and trading near a two-year high.

Trade uncertainty on Friday led to declines among U.S. stocks as investors reacted to renewed trade turmoil. The S&P 500, the Nasdaq, and the Dow slipped 0.9%, 1.4%, and 1.0%, respectively. Chinese tech stocks surged, driven by DeepSeek’s artificial intelligence developments.

The week witnessed a mixed landscape for U.S. markets as trade turmoil and corporate earnings guided investor sentiment. As always, investors must remain vigilant and cognizant of global trade policies and their potential impact on markets.