What Happened?

Shares of technology and consulting giant IBM (NYSE: IBM) fell 4% in the morning session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.

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What Is The Market Telling Us

IBM’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 20 days ago when the stock dropped 8.1% on the news that disappointing fourth-quarter results from industry bellwether Gartner sparked widespread concerns about a slowdown in the sector. The research and advisory firm reported that revenue in its Consulting segment fell 12.8%. This weak performance from a major industry player appeared to validate broader market fears about the health of the IT services and consulting industry. The negative sentiment spread quickly, with shares of other major companies like Accenture and Intuit also falling sharply. The market now seems concerned about a potential slowdown in the sector's growth rate, compounded by uncertainty over the long-term impact of artificial intelligence on existing business models.

IBM is down 15.3% since the beginning of the year, and at $246.78 per share, it is trading 21.7% below its 52-week high of $314.98 from November 2025. Investors who bought $1,000 worth of IBM’s shares 5 years ago would now be looking at an investment worth $2,045.

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