With the major stock market indexes back near their highest levels on record, Wall Street has shaken off a wave of anxiety about trade and regional banks.

The Dow is up 309 points, or 0.7%, and on track to close north of the 47,000 mark for the first time. The S&P 500, up 0.1%, is just a touch below its Oct. 8 closing high. The Nasdaq Composite is down 0.1%, but still not far off its highs.

Sevens Report Research’s Tom Essaye tells Barron’s Wall Street is effectively back where it was prior to Oct. 10, when President Donald Trump ratcheted up trade tensions with China.

“Nothing is fixed at all, but the market just sort of assumes as long as the U.S. and China meet, then some sort of truce will be decided again,” Essaye says. “Most of that opinion is just based on the idea that they both won’t choose mutually assured destruction. And that’s right—they’re not.”

Essaye notes that earnings season has been strong across sectors, which is a positive sign for the economy.

“We’re seeing a wide swath of companies navigating the uncertainty and doing it very well,” Essaye says. “That’s awesome, but I do think it’s important that people realize that the main reason these companies are able to negotiate all of the uncertainty is because the underlying economy is still strong.”

There’s a caveat: If the economy starts to lose steam, suddenly companies may have a tougher time navigating uncertainty coming from Washington, D.C., according to Essaye.

“What I don’t think people should do is extrapolate out resilient earnings to believe ‘Oh, well tariffs aren’t actually going to cause an earnings problem’ or ‘Never-ending policy uncertainty isn’t going to cause an earnings problem’,” Essaye says. “It will, as soon as the economy stops just pushing everything higher.”

Beyond Tesla earnings on Wednesday and the consumer price index for September on Friday, Essaye will be watching Big Tech earnings closely to make sure they “have their foot on the gas” when it comes to artificial intelligence capital expenditures.

“That’s probably the most important thing for the economy and the markets at this point,” Essaye says.