Stock rally attributed to 'TACO trade'

Stock markets jumped Tuesday, with the S&P 500 posting its biggest gain in weeks.

- JASON KARAIAN

The index rose more than 2%, which analysts attributed to President Donald Trump's delaying a proposed 50% 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 Trump makes tariff threats, only to rebound just as sharply when he relents and gives countries more time to negotiate deals.