Markets react with unbridled joy to tariff reductions—although HSBC warns of ‘bumpier’ road ahead

• There was an almost universally positive reaction across global stock markets yesterday and today to the White House’s announcement that tariff levels in the U.S.-China trade war would be reduced for 90 days. Indexes in China and Japan closed up and Europe rose in early trading as well. A research note from HSBC warned, "things could easily turn out a bit bumpier in future trade negotiations."

The S&P 500 index closed up 3.26% yesterday and it nearly erased its losses for the year.