The parenthesis are returning a single value, the curly braces are executing multiple lines of code.
Your example looks confusing because it’s using JSX which looks like multiple “lines” but really just gets compiled to a single “element.”
Here are some more examples that all do the same thing:
const a = (who) => "hello " + who + "!";
const b = (who) => ("hello " + who + "!");
const c = (who) => (
"hello " + who + "!"
);
const d = (who) => (
"hello "
+ who
+ "!"
);
const e = (who) => {
return "hello " + who + "!";
};
You will also often see parenthesis around object literals because that’s a way to avoid the parser treating it as a code block:
const x = () => {} // Does nothing
const y = () => ({}) // returns an object