The threat of a punishing trade war sent Wall Street on a roller coaster Monday. After initially falling sharply on worries about President Donald Trump’s tariffs, U.S. stocks pared their losses after Mexico said it had negotiated a one-month reprieve.

The S&P 500 ended up falling 0.8% after Asian and European indexes logged worse drops. The Dow Jones industrial average lost 122 points, or 0.3%, and the Nasdaq composite sank 1.2%.

The U.S. stock market had been on track for a much worse loss at the start of trading on worries about how much pain U.S. companies would feel because of the tariffs. The S&P 500 was briefly down nearly 2%, and the Dow dropped as many as 665 points.

Some of the heaviest losses hit Big Tech and other companies that could be hurt most by higher interest rates that could result from the U.S. tariffs announced on imports from Canada, Mexico and China.

The fear hanging over Wall Street is that Trump’s tariffs could push up prices for groceries, electronics and all kinds of other bills for U.S. households, adding upward pressure on a U.S. inflation rate that’s largely been slowing since its peak three summers ago.

Crude oil prices swung Monday amid the uncertainty. The price for a barrel of benchmark U.S. crude went from $72.53 on Friday to nearly $75 before the U.S. stock market opened Monday to briefly falling back toward $72.

Constellation Brands, the company that sells made-in-Mexico Modelo and Corona beer brands in the United States, fell 3.5%. Richfield-based Best Buy, which sells electronics made around the world, lost 2.4%. Brown-Forman, the company behind Jack Daniel’s that sells alcohol in Canada, fell 3.3%.

All told, the S&P 500 fell 45.96 points to 5,994.57. The Dow dropped 122.75 points to 44,421.91, and the Nasdaq composite sank 235.49 to 19,391.96.

The yield on the 10-year Treasury edged down to 4.53% from 4.55% late Friday after earlier dropping as low as 4.46%.

Short-term Treasury yields rose Monday as expectations waned for cuts to rates from the Fed. The yield on the two-year Treasury rose to 4.25% from 4.21%

— Associated Press