The SPDR S&P 500 ETF (SPY) closed at $601.82, down 0.53% on January 31, as the announcement of new tariffs set to take effect on February 1 triggered a risk-off sentiment across US equity markets. The S&P 500 index, which SPY tracks, fell 0.50% to 6,040.53. The market's initial optimism, buoyed by in-line PCE inflation data and strong earnings reports, was overshadowed by the White House's confirmation of tariffs on Canada, Mexico, and China. This development heightened fears of increased costs and potential earnings declines, particularly impacting sectors reliant on global trade, such as energy. The VIX, a measure of market volatility, rose as investors sought downside protection, reflecting increased market anxiety. Additionally, the tech sector, which had shown resilience earlier in the day, faced renewed pressure, with Nvidia's stock continuing its decline amid concerns over competition from China's DeepSeek AI model.