The markets can pass the uncertainty of the maximum rate, even when investors weigh new taxes on automotive imports and the appearance for the ‘Day of Liberation’

• Investors have been forced to calculate With the apparent fact, Trump takes the implementation of substantial tariffs in several, if not all, all US commercial partners. While there is a lot of agitation to come, Morgan Stanley Investment Management Executive Jim Caron said merchants are well equipped to map how different scenarios could affect the global economy and corporate profits.

The 25% rate of President Donald Trump on imported vehicles and car parts stopped car shares on Thursday, but the S&P 500 and other important indices remained relatively stable. It could be another sign that investors are increasingly sure that markets have passed “maximum tariff uncertainty”, such as Jim Caron, an executive from Morgan Stanley Investment Management, expressed it, even if there is probably much agitation around the commercial policy of the United States to come.

The actions increased to start the week after the reports of The Wall Street Journal and Bloomberg The administration was considering reducing the scope of the so -called “reciprocal tariffs” that were revealed on April 2, which the president has referred as “day of liberation.” Regardless of what is revealed, Caron said Fortune Earlier this week, investors are better prepared to react to these developments than when the shares fell earlier this month.

“There is a difference between uncertainty and volatility,” said Caron, investment director of the company’s portfolio solutions.

Markets despise the first, he said, because it is impossible to quantify, for example, if the president is only speaking hard to tax imports as a negotiation tactic. Now, investors have been forced to take into account the apparent fact that Trump takes seriously the implementation of substantial rates in several commercial partners, if not all, commercial partners.

Of course, it is impossible to determine the scope of these rates in advance, no matter which sectors will be most affected or if the reprisals of other countries will result in a global commercial war. But merchants can map how different scenarios affect the global economy and corporate profits, said Caron, who called “volatility management.”

“That, in financial markets,” he said, “we are really equipped to handle and understand.”

Investors have already moderated expectations for the economy this year. Goldman Sachs recently lowered his projection for the growth of the US GDP.

When it comes to the impact of tariffs on inflation, Caron cited the press conference of the President of the Jerome Powell Federal Reserve last week. The head of the United States Central Bank said that a unique shock at prices would result in “transient” or temporary inflation, while indicating that a chain reaction of increasing price increases remains a threat.

The nature of the counter, again, of Trump’s tariff threats led to the S&P 500 to the correction territory for March 13, since the index fell 10% from its historical maximum in mid -February. The compound Nasdaq Technological heavy fell by 14% in that period, but both indices have recovered more than 3% since then.

Will the trade of “American exceptionalism” last?

Caron said his team tried the fall as a purchase opportunity in both in the United States and in Europe. In recent years, investors have been much better to park their money in American shares than anywhere else. However, a chaotic flood of Trump administration advertisements has agrious markets in the trade of “American exceptionalism.”

Although the S&P 500 has dropped almost 3% in 2025, the actions through the pond have increased as the continent is preparing to drastically spend in defense and infrastructure amid fears of abandonment of the United States. Stoxx 600 Paneuropeo has increased by 7% in the year to date, while in Germany, where the government has reached an agreement to potentially unlock $ 1 billion in new disbursements, the country’s Dax index has jumped more than 12% in that period.

Meanwhile, the China 50 S&P index has increased more than 16%, although Trump increases tariffs on China by 20% from the beginning of its period, inflaming the growing tensions between the world’s superpowers. Optimism about China’s technological sector and AI capacities has increased significantly since the surprise success of Deepseek’s R1 model. Joe Quinlan, who supervises the market strategy for the Heritage Management Divisions of Bank of America and Merrill Lynch, said Wall Street is optimistic about government efforts to boost the brand of consumer demand.

“China really took the fiscal bazuca,” he said. “They really became aggressive with monetary policy.”

The monthly survey of the Bank of America Fund Administrator found that 69% of respondents said that the “American exceptionalism” had reached its maximum point, informing the greatest fall in the allocation of US capital since Bofa began conducting the survey in 1994.

However, investors are being cautious when they look abroad. Stephanie Link, which manages a portfolio of $ 6 billion as the main investment strategist in Hightower Advisors, said Fortune Earlier this month, he distrusts himself from pursuing profits in Europe, where he said that a stricter regulation weighs on the profit margins.

He feels even less comfortable with China and his authoritarian regime, pointing out the mysterious disappearance of the founder of Alibaba, Jack Ma. Before trembling hands With Chinese president Xi Jinping at an event last month, MA had seen in public moderation after criticizing Chinese finance regulators in 2020.

Link is more optimistic in India, where he noticed that companies like Apple are moving their supply chains to reduce exposure to China, and a growing middle class, he said, will support growth.

It makes sense that investors seek some diversification, he said, with the S&P 500 quoting approximately 22 times earnings to notice. The average of 20 years for the index has been about 16 years old, according To the milestone.

“I think we have American exceptionalism,” Link said earlier this month, “but I think he is reaching a very high price.”

At least some investors feel that the tariff image is being cleaned very slightly.

This story originally appeared at Fortune.com