As President Donald Trump's tariffs continue to create headwinds, UBS said investors should focus on long-term trends set to boost markets.

Both the S&P 500 and Nasdaq - and by extension, MSCI's world equities index - retreated from record peaks after traders shaved back bets of U.S. rate cuts this year as prices rose for things such as coffee and couches, while staying steady for tariff-exempted items such as cars.

Trump’s tariffs and the trade war continue to roil global markets. Follow along for live updates on the Dow, S&P 500 and Nasdaq.

Stock futures fell Monday following the U.S. government’s announcement that tariffs are set to go into effect Aug. 1. The Dow Jones Industrial Average futures slid by 53 points, or 0.1%, while the S&P 500 and Nasdaq 100 futures dipped 0.

In a wide-ranging interview with NBC News, Trump talked about tariffs, sending Patriot missiles to NATO for Ukraine and how he'll sell his recently passed "big, beautiful bill."

The economy’s resilience so far to President Trump’s global trade war risks emboldening him and unleashing the sort of economic devastation that economists have long feared.

The stock market and bond market are forecasting different scenarios for the U.S. economy. The former projects optimism — higher equity prices, earnings growth, broad enthusiasm — but the latter sees weakening growth. Apollo chief economist Torsten Slok highlighted this disconnect in research published this week.