Happy Tuesday! Markets reacted positively as the U.S. and Canada agreed to pause tariffs for at least 30 days, focusing instead on border security and fentanyl trafficking. Stay ahead of the latest policy shifts — and how they could impact markets in the weeks ahead. Also, read why the Fed is avoiding rocking the boat.

—Josh Enomoto

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MARKET RECAP

Yesterday: Stocks dropped Tuesday as renewed tariff concerns pressured markets, with small caps and tech stocks underperforming. Bond yields were mixed as short-term rates rose on scaled-back Fed rate cut expectations, while long-term yields fell amid safe-haven demand. Investors remain focused on trade developments and potential policy offsets, including tax cuts and deregulation, to gauge market direction.

On Our Radar: In one hour, analysts will review job openings and factory orders. On the earnings front, tech giant Alphabet will disclose its results following Tuesday’s closing bell.

TOP STORY

Trump, Trudeau Strike Border Security Deal, Tariffs On Canada Paused For 'At Least 30 Days'

The U.S. and Canada reached a temporary agreement to delay tariffs, easing market concerns while shifting focus to border security initiatives.

Get the full breakdown — and what this means for trade, currencies and key sectors moving forward.

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FIVE ZINGERS

Border Dispute: The U.S. and Mexico agreed to pause a planned 25% tariff for one month, agreeing to tackle security issues. Here's the one ETF that's attracting plenty of noise amid the geopolitical drama.

AI Rebound: Several AI-related enterprises shot higher thanks to Palantir's blowout earnings. Discover the catalysts driving the extraordinary growth.

Gold Bug: Author Robert Kiyosaki of "Rich Dad Poor Dad" fame sees a big opportunity in gold amid Monday's market crash. Learn about the other assets on his radar.

Cleaned Out: Consumer goods giant Clorox beat on both earnings and sales for its Q2 earnings report. Still, read why CLX stock wasn't moving in an intuitive direction.

Big Deal: President Trump announced plans for the creation of the first-ever U.S. sovereign wealth fund. Learn what this milestone moment entails.

SPECIAL OFFER

The Insider Report: Market Shuffles As January Closes

Editor’s Note: Every week, Benzinga Edge members receive the Insider Report. It’s a rundown of what to expect from the markets in the week to come, which sectors are outperforming and why, and most importantly, a selection of hand-picked stocks that are poised to move up because of that week’s trends. Here’s a sneak peek:

The Fed did their best to not rock the boat last week, and I think they were largely successful in doing so. Rates didn't move, and Fed Chair Powell said the Fed was in no rush to cut rates again in the near-term.

Then we had the GDP data that came in below estimates. If anything, this gives the Fed another bit of data to resume rate cuts, and in all likelihood, the next cut will come sometime either in June or July.

This week, we have key employment data, and I must admit, this is a growing area of concern for me. We're seeing the complete restructuring of the federal government right now, and that includes major government job loss. But when it comes to Fed moves, an uptick in unemployment would push for them to cut interest rates sooner and more aggressively.

To keep reading and to find out how investors can prepare for the current stance of the Fed, sign up for Benzinga Edge here.

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