How the ‘TACO' trade went from a light-hearted Wall Street joke to a serious moneymaker

Nine of the 10 best S&P 500 trading days since the start of President Trump's second term were driven by de‑escalation tied to tariffs or Iran, underscoring the outsized market response to détente. The pattern indicates that trade- and geopolitics-related easing produces market-wide, risk-on moves that can generate large single-day gains for the S&P 500.

Analysis

Nine of the 10 best S&P 500 trading days since the start of President Trump's second term were driven by de‑escalation tied to tariffs or Iran, underscoring the outsized market response to détente. The pattern indicates that trade- and geopolitics-related easing produces market-wide, risk-on moves that can generate large single-day gains for the S&P 500.