No one can predict with certainty how the stock market will react to economic changes in the short term or long term. However, many experts expected that tariffs would cause the stock market's performance to suffer, and they were proven right in the immediate aftermath of new tariffs taking effect.

During Donald Trump’s first term as US president, he regularly referred to rising stock markets as evidence of the success of his economic policies. “Highest Stock Market EVER”, Trump wrote on social media in 2017 after record gains. “That doesn’t just happen!”

U.S. stocks are rallying again following weeks of scary swings. The S&P 500 rose 1.1% Monday and was on track for a second straight gain after falling 10% below its record last week.

U.S. stocks are holding steadier Monday, and the market’s scary roller-coaster ride from recent weeks is slowing. The calm trading may be short-lived, though, with a decision by the Federal Reserve on interest rates coming later in the week and worries continuing about President Donald Trump’s trade war.