After a great start of the year 2019, volatility started creeping into Wall Street and is now looming large. A dovish Fed seems of little help as the U.S.-China trade crisis has deepened. SPDR S&P 500 ETF (SPY) Invesco QQQ Trust (QQQ) and SPDR Dow Jones Industrial Average ETF (DIA) have lost about 3.7%, 6.3% and 4.4%, respectively, in the past month (as of May 23, 2019).

The Trump administration lifted tariffs on $200 billion worth of Chinese goods from 10% to 25% on May 10 and China announced a retaliatory move —- a tariff hike on $60 billion worth American goods to 25%, starting Jun 1. President Donald Trump is also considering additional tariffs on an incremental $325 billion of Chinese imports.

Not only this, Washington has forbidden U.S. firms from doing business with Chinese giant Huawei, citing national security concerns. On May 23, the U.S. Commerce Department said that it was proposing a new rule to implement anti-subsidy duties on products from countries that undervalue their currencies against the U.S. dollar, another move that could undermine Chinese trade.