Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Monday, February 3rd, and I'm your host, Kim Khan. Our top story so far. Don't touch that dial. In double jeopardy, the scores can really change.

The tariff narrative took a swift turn this warning after a delay in implementation of U.S. tariffs

on Mexico.

The move prompted buying in stocks and a reversal of the greenback's gains against the peso

and the loony.

Mexico President Claudia Shinebaum tweeted,

Tariffs repose for a month from now, following a call with President Donald Trump.

Trump then confirmed

the one-month delay. Mexico will send 10,000 National Guard troops to the border to combat

drug trafficking, while the U.S. pledged to work to prevent the trafficking of high-powered

weapons into Mexico. The delay forced traders to quickly rethink the global trade landscape,

which this warning looked like, in the words of one analyst,

an escalating trade war, and the worst trade shock in 50 years. While Trump initially took an extremely protectionist stance, today shows flexibility, and that could remove an expected

drag on equities. Goldman Sachs strategist David Koston said, before the Mexico delay was announced,

that for each 5 percentage point increase

in the U.S. tariff rate, S&P 500 earnings, would reduce by 1 to 2%. As the same 25% tariff on

imports from Canada and Mexico would have increased the effective U.S. tariff rate by

7 percentage points from the current 3%, implying a 0.7% increase in U.S. core PCE prices and a 0.4% hit to GDP.

Still, there's plenty more tariff back and forth to come. Trump said tariffs on the European

Union would definitely happen, and that while there's no timeline, it would be pretty soon.

He added that a deal with the UK could probably be worked out. In trading, stocks were taking on the chin at the open,

...