Wall Street loves a catchy acronym, and the “TACO trade” has captured the mood, as investors and analysts attempt to make sense of the roller-coaster market action that has followed President Donald Trump’s sweeping tariff threats and subsequent walk-backs.

Investors are beginning to realize that Trump never follows through on his tariff threats, inspiring the TACO trade: 'Trump always chickens out'

It was another week of policy pivots, back-and-forth trade headlines, and economic data that did little to anchor investor expectations. In the midst of the chaos, one phrase kept surfacing across Wall Street: the "TACO" trade.