Stocks Rally on the ‘TACO Trade’

New York Times: “Stock markets jumped on Tuesday, with the S&P 500 posting its biggest gain in weeks. The index rose 2 percent in afternoon trading, 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.”