Trump’s prices continue to come. The stock markets do not seem to worry about it.

At least for the moment, the US stock market is on board the increasingly aggressive use by President Donald Trump in terms of prices.

On Tuesday, the main stock market indices reached new heights of all time while investors have digested a Inflation report which was above all dynamic than fearing. Although the details of the report suggest a joint overall image for the economy, he suggested that fears of an increased immediate prices of Trump prices are no longer justified.

“Many prices will eventually increase over time due to prices, but we do not see persistent inflation pressures,” said James Knightley, an international chief economist, in a note to customers. “We are in a very different situation from 2021/22 when inflation has climbed to 9%.”

Although the inflation rate of certain goods exposed to prices is recovered in July, it was lower for others, such as devices and clothing. The heavier price increases last month were rather mainly in the service sectors such as plane tickets and car insurance rates.

“Resistance has been concentrated on a few specific and not based components,” said Citi analysts in a note.

Prices are costs added to imports in the form of taxes. Goldman Sachs analysts estimated that consumers have been responsible for 22% of cost increases, the percentage that should climb while prices work more fully in supply chains – although Trump has attacked Goldman estimates on Tuesday. Companies’ efforts to store goods before prices impacts, as well as summer discounts and extensions of the Trump’s current level of price, have isolated consumers of new effects.

The prices continue to obtain a negative reaction in the surveys, with a survey in mid-July fox news showing The Americans disapproved of Trump on prices by a 26 -point margin. This was practically unchanged from April, when Trump revealed new shock rate levels in his “Liberation Day” speech by Rose Garden announcing an evolution of new import levels.

Stocks, on the other hand, continue to raise them. After Tuesday’s inflation report, merchants increased the chances of a drop in the rate by the federal reserve at its next meeting in September. When the markets expect the federal reserve to serve financial conditions and facilitate business borrowing, shares tend to increase, because companies will have to pay less interest in interest.

The recent behavior of stocks contrasts strongly with their dramatic spring sale in the wake of the speech of the “Liberation Day” of April. The investors’ reaction was so intense that Trump instituted a 90 -day break to reconsider what was to be the cornerstone of the economic policy of his second administration.

Today, Trump’s attention on prices has not decreased – but he has taken up the more maximalist rate levels which he initially described. Combined with the signs of a more fragile labor market, investors are more convinced that the Fed will be mistaken on the side of supporting the economy by reducing interest rates to support global commercial activity.

The performance of the stock market itself is however not a complete image of the wider economy. Instead, the gains of the S&P 500 and the Nasdaq are increasingly reflecting the disproportionate yields of a handful of technological companies which, according to investors, will harvest massive gains of their investments in artificial intelligence technology.

The so -called magnificent Seven Tech Stocks – Alphabet (Parent de Google), Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – now represent a third of the weighted average of the S&P 500, the widest index of action Reuters reported last monthCiting data from LSEG Datastream Consultancy.

According to Morgan Stanley analysisAt the end of July, only 9% of the companies that make up the S&P 500 were 52 weeks old peaks.

The index movements are therefore now strongly correlated with the changes to the prospect of a handful of companies. If only one of them underperform, it can lead to the entire market with it.

“When a handful of actions dominate the market … If you have a period of disappointment of these actions, you can see disproportionate impacts on your portfolio from a handful of company-specific problems,” Michael Reynolds told Reuters, vice-president of the investment strategy at Glenmede Financial Group.

Small businesses remain particularly vulnerable to the impact of prices because they have less pricing power than large companies. The National Federation of Independent Businesses, the largest trade in small businesses in the country, reported Tuesday That a share in narrowing of respondents says that it is profitable.

“The increase in costs affects everyone. I think things will improve, but it will take time – six to 12 months. I just hope In a July report.

The American economy is not yet outside Woods, said Kevin Gordon, director and main investment strategist at Charles Schwab Financial Group. On Wednesday, the Bureau of Labor Statistics will report a distinct measure of inflation which follows large inflation, or what producers obtain for their products and which tend to be more closely monitored by the Federal Reserve. If he shows more pronounced inflation signs than what Tuesday’s report suggested, the actions could quickly come from their new heights.

Unless that, the conditions remain more benign than the fearing, he said, potentially preparing the way for new action gains.

“Lower growth is not a concern at the moment,” he said. “Yes, there was a little withdrawal, but that does not mean that we are in a recession scenario.”