Good morning and welcome to February. Today is Monday, February 3rd. I'm Rina Sherble,

filling in for the illustrious Julie Morgan. Our top stories today, futures tumble as

tariff battles begin, open AI launches new

agent, and Musk moves to shutdown aid agency. Stock index futures slumped on Monday after President

Donald Trump authorized tariffs on Canada and Mexico, and analysts say, look set to spark a trade war.

SMP 500 futures were down 1.5%. Nasdaq 1.8% and Dow futures down 1.3%. The 10-year treasury yield was flat at 4.5%. And the two-year rose six

basis points to 4.28%. On Saturday, Trump imposed 25% tariffs on most imports from Canada and Mexico,

and a 10% tariff on Chinese goods, effective Tuesday. U.S. stock averages ended in the red on Friday

after the Trump administration said tariffs on key U.S. trading partners will go into effect delivering

on a campaign pledge telegraph to markets. Deutsche Bank's Jim Reid said, what Trump did was

follow through on exactly what he's been saying he's going to do since November. The market has

refused to take that threat seriously, though, completely underpricing the risks. So this leaves

the weekend news as a severe shock.

Reed added, if implemented and prolonged, Canada and Mexico would likely go into an imminent

recession and potentially see a bigger shock than Brexit was for the UK.

UBS's Paul Donovan said, U.S. price increases will be rapid for some items with reports of fuel companies announcing price increases already.

There may be profit-led inflation if consumers expect price increases.

China was able to reroute exports after Trump's first-term taxes, but that is difficult for Canada and Mexico.

Canada's prime minister, Justin Trudeau,

said Canada will place 255 percent tariffs on 155 billion in U.S. imports in retaliation for those

tariffs and acted by President Trump. On Sunday, Microsoft-backed Open AI launched a new feature in chat

GPT called Deep Research,

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