The Boomerang -month of the stock market has brought investors in a binding

The stock market is now higher than before the broad and steep rates of President Trump have sent stock prices in a downward play. The 10-year return of the government bonds is now largely in line with where it started the year. On Tuesday, a widespread standard for inflation pushed lower.

Based on a snapshot Of today’s financial markets it would be easy to conclude that very little had happened in the past four and a half months.

Since the administration has sent his commercial offensive, postponing the worst rates announced on April 2 and promotes a long list of trade agreements in the work, shares have risen and the nervous volatility in the market for federal bonds – that Mr Trump remarked when he first disappeared – has disappeared – has been disappeared – Taravenen.

On Tuesday, the last reading of the consumer price index in April showed a slower pace of inflation than predicted economists, despite widespread worries that rates could have accelerated the price increases.

The S&P 500, which came close to reaching a bear market at the beginning of last month, rose by 0.9 percent on Tuesday. The index is now slightly higher since the start of the year.

Yet investors remained careful and complain that the prospects remain insecure, with little clarity about what the final level of rates will be.

That leaves them in a difficult position, with many who say they have little conviction about where the economy is going, but they cannot afford to wait on the sidelines and miss the possibility that rates will be reduced and the shares will rise.

In the meantime, investors are still trying to analyze how the rates that remain in force – including 30 percent rates for many Chinese imports – influence consumer expenses and company profits

John Kerschner, portfolio manager at Janus Henderson, said that signs of tariff-driven inflation will probably not appear in the economic data for months.

“The market will wait with held breath for those lectures to make a determination of what we are actually standing on by rate -induced rising prices. So market uncertainty will probably remain increased,” said Mr. Kerschner.

The Federal Reserve is also in a wait -and -see mode, which is not willing to continue to lower the interest rates before the inflatory effect of the new rates is known. That is because lower interest rates stimulate the economy and can add a further wind wind to inflation.

Market race on when the FED is gradually pushed further the next lower interest rates. At the beginning of this year, investors expect the Fed to lower interest rates during its meeting last week. Now investors expect the first interest of the year to arrive at the September meeting.

Ellen Zentner, Chief Economic Strategist for Morgan Stanley Wealth Management said that the lower than expected reading on Tuesday in the consumer price index “does not mean that rates do not affect the economy, it simply means that they do not yet appear in the data.”

“Wait-and-see is still the name of the game, and until that changes, the Fed stays on the sidelines,” she added.

The longer uncertainty prevails, the more it becomes its own economic strength, apart from the rates. Uncertainty means that companies stick to making investment decisions and withdrawing consumers withdrawal from spending, so that economic growth is delayed.

Under the surface, that concern is still clear in the markets.

The Russell 2000 index of smaller companies, which are more at risk due to a recession in the economy, has risen from its low, but remains 14 percent lower than its peak in November. The S&P 500 is only 4 percent of the February High.

The lowest rated business debt continues to show some signs of tension.

Then there is the dollar, which has sent the most pointed signal From concern about rates. The Dollar Index, which measures the currency against a basket of its colleagues, has fallen by 6.7 percent this year so far.

That is the largest slide of the dollar since the end of 2022, when the Fed turned to increase the interest rates that the dollar had strengthened to keep them stable.

But even now, because rates have been disconnected, the dollar is regained ground.

“As far as the markets are concerned, there is now a conviction that the worst of the trade war has passed, and that the trend is now for de-escalation,” analysts at Deutsche Bank said in a recent research bill. But they also warned: “The US is not yet out of the forest.”