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Fundstrat said Trump's policy decisions drove the five biggest gains and losses in the stock market during his second term, with tariffs, the Iran war, and Fed chair decisions fueling volatility. Without the five strongest Trump-driven days, the S&P 500 would be down 2.7% instead of up 19%. The "TACO trade" — short for "Trump always chickens out" — evolved from a joke into a force shaping market behavior.

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00:00It's Benzinga bringing Wall Street to Main Street.
00:03Fundstrat said Trump's policy decisions and commentary drove the five biggest gains and
00:07losses in the stock market during his second term, according to Benzinga. The report said
00:12tariffs, the Iran war and Federal Reserve chair decisions drove volatility, reflecting his art
00:18of the deal negotiation style. It said the S&P 500 would be down 2.7% since 2025 without
00:26the five
00:26strongest days tied to Trump, instead of up 19%. Trump's influence marks a shift from the norm,
00:32with his policy actions driving the S&P 500 more than typical factors like earnings,
00:37geopolitics, and monetary policy. The taco trade, short for Trump always chickens out,
00:43evolved from a tongue-in-cheek term into a force-shaping market behavior,
00:46building on the earlier Trump put idea from his first term. Analysts said it reflects bearish
00:52investors overestimating downside risks, while Fundstrat said shifting policies may force
00:57investors to change strategies and not fight the White House. For all things money, visit Benzinga.com.
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