Wall Street Revives ’TACO Trade’ as Trump Walks Back Greenland Threats
U.S. stocks extended gains following President Trump's retreat from aggressive rhetoric on Greenland and European tariffs, reigniting discussions of the 'TACO Trade' strategy. The acronym—'Trump Always Chickens Out'—reflects a market pattern where assets rebound after initial sell-offs triggered by presidential threats.
Dip-buyers have capitalized on this volatility since 2025, though recent events show diminishing market sensitivity. The S&P 500's resilience underscores how traders now anticipate policy reversals, turning geopolitical noise into tactical entry points.