Higher tariffs can increase input costs for companies, compress profit margins, and invite retaliation from trading partners overseas. Even if the broader economy shows no immediate recession signals, markets price forward risk. Monday’s session reflected that repricing in real time.
COBOL may sound like a relic, but it powers vast portions of the financial system, including the majority of U.S. ATM transactions and many government platforms. Modernizing those systems has been a lucrative business for IBM’s mainframe and consulting units. If AI can perform that work faster and at lower cost, investors see long-term revenue pressure.
The Kraken executive added:
The coming days will test whether Monday was a sharp adjustment or the start of a broader repricing. Investors will watch for responses from major trading partners, additional White House commentary and incoming economic data. For now, markets appear to be recalibrating — and doing so decisively.
FAQ Why did U.S. stocks fall on Feb. 23, 2026?Stocks declined after President Trump raised global tariffs to 15%, increasing uncertainty around trade and corporate earnings. Why did IBM drop more than 13%?IBM fell after Anthropic introduced an AI tool capable of automating COBOL modernization, threatening a key revenue stream. Why did bitcoin move lower with equities? Bitcoin declined amid a broader risk-off shift as investors reduced exposure to volatile assets during tariff escalation. Why did gold and silver rise?Precious metals gained as investors sought safe-haven assets amid trade tensions and geopolitical uncertainty.
