US benchmark equity indexes pared losses intraday as President Donald Trump paused new tariffs on Mexico.

The Nasdaq Composite was down 1.2% at 19,401 after midday Monday, while the S&P 500 fell 0.7% to 5,997.3. The Dow Jones Industrial Average dropped 0.2% to 44,446.3. Among sectors, technology saw the steepest decline, while consumer staples paced 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. 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 were down 3.5% intraday, the steepest decline on the Dow and among the steepest on the Nasdaq. Nvidia (NVDA) and Caterpillar (CAT) were among the worst performers on the Dow. Electric vehicle maker Tesla's (TSLA) shares slid 6.1%, the biggest drop on the Nasdaq and the second-biggest 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 to clients.

The US 10-year yield was down 3.8 basis points at 4.53% intraday, while the two-year rate rose 1.5 basis points to 4.25%.

In economic news, the US manufacturing sector rebounded in January as demand conditions improved, two separate surveys showed. Institute for Supply Management data 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 was little changed at $72.53 a barrel intraday.

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%.

Palantir Technologies (PLTR), NXP Semiconductors (NXPI) and Everest Group (EG) are among the companies scheduled to report results after Monday's closing bell.

Gold was up 0.9% at $2,859.50 per troy ounce, while silver rose 1% to $32.58 per ounce.