Arrow function without curly braces

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

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