January 23, 2026 06:36 AM EST
After Trump’s Greenland Deal, Wall Street Is Talking Up the ‘TACO Trade’ Again. What’s Next?
FROM 17 minutes ago
Yesterday was Taco Thursday on Wall Street.
U.S. stocks, which rallied Wednesday, extended their gains Thursday after President Donald Trump said he would not use force to take over Greenland nor impose new tariffs on a group of European nations after the U.S. and NATO reached a “framework of a future deal” on Greenland’s sovereignty.
The détente revived talk on Wall Street of the TACO, or “Trump Always Chickens Out,” concept, which broadly refers to the president’s habit of threatening steep tariffs or other dramatic actions before reducing, delaying, or canceling them. This has inspired the so-called TACO Trade, in which investors buy assets rattled by the president’s threats under the assumption they’ll eventually rebound.
Harun Ozalp / Anadolu via Getty Images
“TACO” entered Wall Street’s lexicon via Financial Times columnist Robert Armstrong. “The US administration does not have a very high tolerance for market and economic pressure, and will be quick to back off when tariffs cause pain,” wrote Armstrong in May as stocks rebounded from the carnage of “Liberation Day.”
Later that month, Trump appeared to confirm Armstrong’s theory. Stocks soared on May 12 after the U.S. and China agreed to a 90-day pause on tariffs exceeding 100%, and jumped again weeks later when Trump announced a similar pause on tariffs targeting the EU.
Read the full article here.
January 23, 2026 06:01 AM EST
Stock Futures Slip to End Volatile Week of Trading
FROM 53 minutes ago
Futures contracts connected to the Dow Jones Industrial Average pointed down 0.3%.
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S&P 500 futures also slipped 0.3%.
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Nasdaq 100 futures were 0.4% lower.
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