Wall Street Games Out How to Profit From Tariff Chaos

As trade worries bubble up once again in US markets, some on Wall Street are gaming out how to take advantage of the wild tariff-related selloffs and rallies that have defined the first five months of 2025.

A study by Nomura strategist Charlie McElligott published last week showed that betting against S&P 500 futures every time President Donald Trump escalated trade rhetoric and buying them five days later would have yielded 12% since the beginning of February. By contrast, simply holding the benchmark index would have left an investor virtually flat in that period — after a series of stomach-churning stock swings. Other investors have worked out similar plays, based on the notion that the pattern of escalation and resolution that has thus far characterized the trade war will continue.