Markets and investors were met with turmoil this week as President Trump ramped up the rhetoric around trade between the world’s two largest economies. Tariffs increased to 25% on $200 billion of Chinese goods Thursday night at midnight despite the lead negotiator of China following through with his visit, and the domestic administration is taking steps to impose tariffs on more than $300 billion of imports. Other geopolitical tension rose out of Iran as it said it will resume uranium enrichment beyond limits under the nuclear deal of 2015 which the U.S. already withdrew from.

Although the 2019 YTD rally is still astounding, the revival of trade tension led domestic large company stocks to slide the most since the December 2018 selloff. U.S. small company, international developed and emerging market equities similarly fell to a greater degree this week. Friday marked one of the largest tech IPOs, Uber, since Facebook in 2012. The company was trying to avoid Lyft’s volatile first days of trading but shares still ended greater than 7.5% lower. Core fixed income offered some haven from equities with positive returns, but credit risky assets went lower.

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