Dan Skelly said markets and the economy are largely ignoring recent policy shocks as investors grow more comfortable with current conditions [1].

This shift in sentiment suggests that the financial sector may have internalized recent volatility, potentially reducing the risk of sudden panic selling during future policy shifts.

Skelly, the managing director and head of the equity model portfolio team at Morgan Stanley Wealth Management, said these views during interviews on Bloomberg Money and CNBC’s The Exchange [1, 2]. He said that the broader economy and the markets are becoming increasingly comfortable with the current economic standings [2].

According to Skelly, the reaction to recent policy shocks has been minimal. This indicates that investors appear unfazed by the shifts and are maintaining a positive outlook on the economic trajectory [1, 2].

While policy shocks typically trigger volatility, the current environment shows a level of resilience. Skelly said that the market is not reacting with the urgency or fear that often accompanies sudden regulatory or policy changes [1].

His comments, delivered on May 28, 2026, highlight a disconnect between policy disruptions and market behavior [2]. This lack of reaction suggests a high level of confidence in the underlying economic fundamentals despite the external shocks [1, 2].

“Markets and the economy are largely ignoring recent policy shocks.”

The observation that markets are ignoring policy shocks suggests a period of high investor complacency or a strong belief in economic resilience. If the market has decoupled from policy risks, it may indicate that investors believe the current economic growth is strong enough to absorb shocks without significant correction.