From The New York Times:
Stock markets jumped on Tuesday, with the S&P 500 posting its biggest gain in weeks.
The index rose more than 2 percent, which analysts attributed to President Trump’s delaying a proposed 50 percent tariff on the European Union that he had threatened only a few days earlier.
They also talked about tacos.
Or rather, the “TACO” trade, which is short for Trump Always Chickens Out. The tongue-in-cheek term, coined by a Financial Times columnist, has been adopted by some to describe the pattern in which markets tumble after Mr. Trump makes tariff threats, only to rebound just as sharply when he relents and gives countries more time to negotiate deals.
Trump Always Chickens Out.
There’s a new trade on Wall Street: the TACO trade, standing for “Trump Always Chickens Out.”
The term was coined by Robert Armstrong, a writer for the Financial Times, and is intended to capture how markets have fallen on Trump’s vow to impose steep tariffs on imports to the United States and then jump back up when Trump announces pauses on those tariffs.
Trump Always Chickens Out.
