So far 2019 has been a great year for the stock market, despite the recent market volatility. During the month of May equity markets fell 7-10% as trade tensions and fears of a global growth slow down took center stage. The issues that rattled the market in May could resurface and require close attention.

First, the trade dispute with China could escalate as the United States could impose additional tariffs on the remaining Chinese goods that U.S. companies import. An escalation in tariffs creates uncertainty for businesses making it hard to predict the future demand for their products and services. Thus, sustained escalation in tariffs could raise consumer prices and potentially weaken corporate profits.