Markets Stabilize as Analyst Predicts Tech Gains Amid Tariff Shift

URGENT UPDATE: Stock markets are stabilizing as analysts predict significant gains in technology earnings and metal prices, following a tumultuous year of tariff battles. According to Nate Thooft, Chief Investment Officer at Manulife Investment Management, markets are “exhausted” but poised for recovery as fears of the worst-case scenario fade.

In a pivotal statement, Thooft remarked, “We’ve seen the worst case scenario. We’re not visiting those high levels of ultimate tariff levels.” This comes in the wake of the U.S. Supreme Court striking down former President Donald Trump’s sweeping tariffs under the IEEPA Act. The market is now adjusting its expectations, anticipating a maximum of a 15 percent tariff rather than the harsher measures previously feared.

As earnings season approaches, Thooft pointed to strong corporate profit growth as a vital support for equity markets in 2026. He forecasts that underlying earnings are set to surge by over 10 percent year-over-year across major regions, with emerging markets expected to see even more robust growth of 15 to 20 percent. This optimism is crucial as investors grapple with ongoing geopolitical risks and trade tensions.

Technology stocks, particularly those in the AI sector, are under the spotlight. Thooft highlighted Nvidia, which represents 5 percent of the global equity market. “They have lofty expectations,” he noted, emphasizing the importance of capital expenditure for future growth.

However, the shifting economic landscape has made long-term government debt less appealing to investors. Thooft warned of increased concerns regarding long-term inflation levels and fiscal spending, suggesting a steepening of the yield curve. “Investors should focus on their fixed-income portfolios,” he advised.

The backdrop of geopolitical tension adds complexity to the market. Thooft expressed concern about the situation in Iran, noting that it has raised global oil prices due to a “risk premium.” He cautioned, “If supply is cut off further, oil prices could go up even more, and that’s a risk we have to think through.”

In contrast, Thooft expressed growing optimism for precious metals, stating, “We like them a little bit more than we did.” The combination of inflation, geopolitical uncertainty, and concerns over fiat currencies is expected to bolster prices for gold and silver. “The drivers that have pushed gold to its current levels are still in place,” he concluded.

As markets navigate these turbulent waters, investors are urged to remain vigilant. The evolving landscape presents both challenges and opportunities, with tech and precious metals emerging as key areas of focus. Watch for continued developments as earnings reports begin to roll in, shaping the market’s response to the changing economic climate.