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Today, U.S. President Donald Trump decided to play nice with many, except China. China is the bad guy today. One possible reason is that it’s hard to label everyone a bad guy; if you do, no one will want to be your friend.

The stock market had an amazing performance today. Markets seem to signal that clarity and predictability are good. It’s better to rely on negotiations, diplomacy, and free trade than on protectionism.

The best-performing category was the technology-heavy NASDAQ-100 index, which jumped 12% (see Chart 1). Other indexes also performed very well: Global Equities, Developed Markets, and U.S. Equities were up 9% for the day (see Chart 1). That’s the kind of performance investors usually hope to achieve during an entire year—yet it happened in just a few hours after the U.S. President announced a 90-day pause on tariff implementation.

This highlights how unpredictable and volatile the stock market can be. On one hand, clarity is welcome. On the other hand, everything can shift in unexpected ways at any moment. What’s different this time is that the change lies outside the control of companies or consumers. Markets do not like unpredictability.

Disclosures:
The analysis is based on historical data and future expectations that may not be correct. This paper was written as an opinion only. The data is not guaranteed to be accurate or complete. Please consult with your financial advisor before making an investment decision. Neither ECNFIN.COM nor its author is responsible for any damages or losses arising from any use of this information. Past performance doesn’t guarantee future results.

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