Volatility across global financial markets exhibited signs of moderating this week, as the world seemed to step back from the brink of an all-out trade war. The Cboe Volatility Index (VIX) has pulled back from its recent highs, while major stock indexes have bounced off their lows, since President Donald Trump delayed a broad set of reciprocal tariffs to allow time for negotiations with trade partners. Encouraging readings on the health of US consumers also helped ease investor concerns over the nation’s growth prospects this year. The Census Bureau reported on Wednesday that retail sales recovered with a 1.4% increase in March after a lackluster February. Earnings from some of the country’s biggest banks also showed that spending on credit and debit cards held strong, offering more evidence that Americans were willing to open their wallets as tariffs loomed.

But uncertainty around geopolitical friction, policy changes, and economic impacts continued to support prices for gold and other assets considered safe havens. In a speech on Wednesday, Federal Reserve Chair Jay Powell cautioned that a potential tariff-induced slowdown coupled with inflationary pressure may put the central bank’s dual mandate “in tension.” This scenario could force officials to prioritize one side of the mandate over the other—at least temporarily—when setting interest rates. In a guide to navigating uncertain markets, PGIM Investments examines bull- and bear-market cycles, dollar-cost averaging, the benefits of diversification, and other topics to help investors remain focused on long-term goals.