Was it a clever strategy or a caving of conviction for the U.S. and China to come to a quick resolution to their trade war? Did Donald Trump acquiesce to market stress, or did China want a quick resolution to avoid a further disruption to their economy? Regardless of the catalyst, the news that the U.S. is going to sharply reduce the proposed tariff on Chinese goods was welcome news to the capital markets. The S&P 500 closed at 5,670 on April 2nd, the so-called liberation day. Three days later it closed nearly 15% lower as fear of stagflation crippled investor appetite for risk. As of May 12th, the index has regained all that loss and is now trading above the level touched when tariffs were first implemented.