Equity markets recover quickly, but policy uncertainty causing investor anxiety.

From Investing.com: 2025-05-20 16:47:00

The equity market has seen a rapid and significant recovery in the past month, but uncertainty still remains. The steep market drop in early April was triggered by a policy shock rather than economic conditions deteriorating. The full impact of tariffs may not be known until later this summer, and if economic weakness emerges or trade negotiations worsen, more market volatility could follow. The Federal Reserve and administration will play key roles in guiding market direction, with potential shifts in policy responses affecting stability. Investors should stay open to further market shifts despite the current positive momentum.



Read more at Investing.com: Equity Markets Rally Fast, but Policy Uncertainty Keeps Investors on Edge