●US-China trade disputes have not clearly been resolved
●Watch for more ups and downs on trade news
Anyone who thinks the December 1 dinner meeting between President Trump and Chinese President Xi Jinping resolved the trade situation between the US and China—and the stock market’s reactions to it—need only look at a chart of the S&P 500 (SPX) since then.
Source: Power E*TRADE
The trade war hasn’t been the only issue on the market’s mind, but alternating news stories of breakthroughs and setbacks on the tariff front have certainly fueled some volatile market moves.
It’s difficult to predict what an ultimate resolution will look like—or when it may occur—but until it does, be prepared for more news stories like the ones that have been whipping the market back and forth for weeks.