Markets Today: Markets Trade Lower as Trump Raises Global Tariff to 15%

U.S. equity markets opened lower on Monday after President Donald Trump announced plans to increase the global tariff rate from 10% to 15% under Section 122 of the Trade Act. While the news has created some volatility, there are reasons to stay calm and keep your long-term investment strategy in focus.

Here's what's happening in the markets today and what it means for your portfolio.

What's Moving Markets Today

Stocks Pull Back on Tariff News

U.S. stocks are trading in the red as investors digest the latest tariff announcement. Defensive sectors like health care and utilities are holding up better than others, while growth-focused areas such as technology and consumer discretionary are seeing declines.

The 10-year U.S. Treasury yield sits at 4.06%, down slightly from recent levels, while the 2-year yield is at 3.48%. Lower yields often signal that investors are seeking safer assets during uncertain times.

In commodities, gold prices have climbed more than 2% as investors turn to precious metals for stability. Oil prices are also up nearly 1%, supported by ongoing negotiations between the U.S. and Iran.

Understanding the New Tariff Rate

President Trump first introduced a 10% global tariff on February 20, following a Supreme Court ruling that blocked tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Over the weekend, he announced the rate would increase to 15%.

These tariffs, implemented under Section 122, can remain in place for up to 150 days. After that period, the administration is expected to pursue other legal avenues—such as Section 301 or Section 232—to maintain elevated tariff rates.

According to the Yale Budget Lab, the effective U.S. tariff rate was 16% before the Supreme Court's decision. With the new 15% global tariff, that rate is projected to drop slightly to 13.7%.

What This Means for the Economy

The good news? The 15% tariff rate is unlikely to cause major disruptions to economic activity. While tariff rates are expected to stay higher than historical norms, the overall impact should be manageable.

We recommend staying focused on the fundamentals: corporate profits remain strong, and economic activity continues to show resilience. Don't let short-term headlines derail your long-term investment plan.

Corporate Earnings Take Center Stage

This week, more than 50 S&P 500 companies are set to report earnings, and all eyes will be on NVIDIA's results, due Wednesday. Investors are eager for the latest insights on AI spending trends, which have been a key driver of market gains.

Other major companies reporting include Salesforce, Lowe's, and Home Depot. These results will provide important clues about consumer spending and business investment.

Earnings Season Has Been Strong

So far, 85% of S&P 500 companies have reported fourth-quarter results, and the numbers have exceeded expectations. Earnings per share are on track to grow 12.7%—well above the 7% growth rate anticipated at the start of the year.

The technology sector has been a standout performer, with earnings growth expected to exceed 25% year-over-year. That's the highest among all S&P 500 sectors.

However, despite strong earnings, the technology sector has struggled in 2026, down roughly 4% year-to-date. Concerns about AI disruption, particularly for software companies, have weighed on the group.

How to Position Your Portfolio

While markets may feel uncertain in the short term, there are smart ways to position your investments for success.

Balance Growth and Value

A balanced approach between growth and value sectors will be key in 2026. Growth sectors like technology offer long-term potential, but value sectors can provide stability during periods of volatility.

We recommend overweight positions in the following sectors:

• Industrials: Benefiting from infrastructure spending and manufacturing growth
• Health care: Offering defensive characteristics and strong long-term fundamentals
• Consumer discretionary: Positioned to benefit from consumer spending resilience

At the same time, consider underweight positions in:

• Consumer staples: Limited growth potential in a healthy economy
• Utilities: Lower return expectations relative to other sectors

Stay Focused on the Long Term

Short-term market movements can be unsettling, but remember that volatility is a normal part of investing. The fundamentals supporting equity markets remain strong, with robust corporate earnings and healthy economic activity.

Don't let headline-driven fears push you into making rash decisions. Stick to your investment plan, stay diversified, and keep your focus on your long-term goals.

Your Next Steps

Here's how to navigate the current market environment:

1. Review your portfolio allocation: Make sure your investments align with your risk tolerance and time horizon.
2. Stay diversified: Spread your investments across sectors and asset classes to manage risk.
3. Focus on quality: Look for companies with strong balance sheets and consistent earnings growth.
4. Keep cash on hand: Having an emergency fund ensures you won't need to sell investments during downturns.
5. Avoid overreacting: Market volatility is temporary. Stay patient and disciplined.

If you're unsure about your investment strategy, consider speaking with a financial advisor who can help you make informed decisions based on your unique situation.

The key takeaway? Markets will always face periods of uncertainty, but staying focused on the fundamentals and maintaining a long-term perspective will serve you well.

Get in touch with a Financial Advisor today! =>