LIVE MARKETS-Shelter from the tariff storm

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SHELTER FROM THE TARIFF STORM

Late on Monday, President Donald Trump announced his threatened 25% tariffs on goods imported from Mexico and Canada, placed on hold a month ago in exchange for beefed up border security, will go into effect today.

That announcement, made just prior to the closing bell, steepened the U.S. stock market's slide and pushed the S&P 500 .SPX to its largest single-day percentage drop since mid-December and sent the bellwether index into negative territory for the year.

On Tuesday, Clark Geranen, chief market strategist at CalBay Investments, published a note urging caution among investors.

Monday's rout suggests "in these situations, investors sell first and ask questions later," Geranen writes "we would urge investors to avoid making any drastic portfolio moves because of tariffs," adding that Trump's past behavior suggests "tariffs are a negotiation tool and are subject to change, sometimes within hours of their announcement."

And while the 25% tariffs against our neighbors to our north and south are happening, Geranen believes they will prove temporary "and not the start of a long and drawn out reciprocal trade war."

Trump's address to congress will be parsed for clues regarding his agenda, from tariffs to details on the extent of billionaire Elon Musk's DOGE-related job cuts, the note says.

Meanwhile, with the S&P 500 now in negative territory for the year, it may present some buying opportunities. Geranen, who still expects the index to post double-digit gains this year, views its sub-6,000 level as an attractive entry point.

Big cap tech stocks present opportunities, the note says.

"While valuations are still elevated, the sector has underperformed so far this year, yet is still generating earnings that are in a league of their own," writes Geranen.

With today's move, the FANG index of megacap tech and tech-related stocks .NYFANG is down about 6.4% so far this year.

(Stephen Culp)

FOR TUESDAY'S EARLIER LIVE MARKETS POSTS:

NASDAQ IN CORRECTION TERRITORY AS TRADE WAR FEARS MOUNT - CLICK HERE

EURO ZONE ECONOMIC WOES WILL PROMPT ECB RATE CUTS, MORGAN STANLEY SAYS - CLICK HERE

BENCHMARK TREASURY YIELD ON A 6-WEEK LOSING STREAK - CLICK HERE

"EITHER WAY, THE EU CONSUMER PAYS" - CLICK HERE

SWISS BULLS CHARGE ON DEFENSIVE PLAYS - CLICK HERE

IS THE EURO STRENGTH A SIGN OF 'ASSERTIVENESS'? - CLICK HERE

VOLATILITY POPS, STOXX DROPS - CLICK HERE

BEFORE THE BELL: TARIFF WOES, DEFENCE POINTS HIGHER - CLICK HERE

NEW TRUMP TARIFFS TAKE EFFECT, EU ALSO IN CROSSHAIRS - CLICK HERE