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Deep Dive: How Tariffs Affect Stock Markets — Trade Policy, Supply Chains, and Your Portfolio

On February 20, 2026, the U.S. Supreme Court struck down President Trump's sweeping "reciprocal" tariffs in a landmark 6-3 decision, ruling that the International Emergency Economic Powers Act does not authorize the president to impose tariffs. Within hours, Trump announced a new global 10% tariff — a reminder that trade policy remains one of the most powerful and unpredictable forces shaping stock markets today. Tariffs are among the most misunderstood tools in economic policy. They simultaneously affect corporate earnings, consumer prices, currency values, supply chains, and investor sentiment. The 2025-2026 tariff saga — from Liberation Day to the Supreme Court — compressed decades of trade policy lessons into a single volatile year. The U.S. trade deficit swung from -$136 billion in March 2025 to -$28.7 billion in October as importers scrambled to adjust, while the Federal Reserve cut rates from 4.33% to 3.64% partly in response to tariff-driven economic uncertainty. This guide explains what tariffs are, how they ripple through the economy to affect specific sectors and stocks, and what investors should watch when trade policy shifts. Whether you're evaluating Nike's supply chain exposure, Walmart's import costs, or Boeing's retaliatory risk, understanding tariff mechanics is essential for navigating today's markets.

tariffstrade policysupply chains

Deep Dive: How Interest Rates Affect the Stock Market — From Fed Policy to Your Portfolio

Interest rates are the single most powerful lever in financial markets. When the Federal Reserve raises or lowers its benchmark rate, the effects ripple through every corner of the economy — from corporate borrowing costs and stock valuations to mortgage payments and consumer spending. Understanding this transmission mechanism is essential for any investor trying to make sense of market movements. The relationship between interest rates and stock prices is not always straightforward. While the textbook view suggests that lower rates boost stocks and higher rates suppress them, reality is far more nuanced. Sector-specific impacts, market expectations, and the speed of rate changes all play critical roles in determining how equities respond. With the Federal Reserve having cut its benchmark rate from 4.33% to 3.64% between September 2025 and January 2026 — a 69-basis-point easing cycle — and the S&P 500 trading near 6,910, the interplay between monetary policy and stock market performance has never been more relevant for investors.

interest ratesfederal reservestock market