Stock Market Is Fixated on Covid With Trade Issues Percolating

Going back to 2018, the start of the trade war between the U.S. and China, stocks with Chinese sales exposure underperformed the broader market, moving on developments in negotiations between the countries. That changed in March 2020 with the onset of the pandemic, when those very underperfomers beat the S&P 500 despite the ~20% tariffs that remained on both sides. The trend declined slightly in 2021, but still illustrated how investors were far more fixated on the pandemic than trade.