The market never took President Donald Trump’s threat to annihilate the Iranian civilization seriously. In yesterday’s trading, all three of the major indexes finished the day flat.
But traders on Wall Street sure did like the 2-week “double-sided” ceasefire announcement. Oil dropped by 20% back to $92 a barrel.
A rally in stocks started immediately following President Trump’s Truth Social post, postponing the death of Iran minutes before the 8 p.m. Eastern time deadline.
The result:
Stocks added over $1.6 trillion in value in overnight trading. (Source: The Kobeiissi Letter)
Sure, it’s annoying. Wall Street has given it the brain-dead moniker “TACO trade,” meaning “Trump always chickens out.”
While in Hungary supporting Viktor Orbán, Vice President JD Vance is reported to have been involved in back-channel talks with China through Pakistan to organize a ceasefire with Iran.
The market cared even less about the “how” or “why” than it did about Trump’s The Art of Armageddon Truth Social Post in the first place.
By dawn, the indexes added $1.6 trillion in the futures market.
A ceasefire isn’t peace, of course.
Repairing global oil, natural gas and petrochemical infrastructure will take weeks, months, even years. But for now, traders on Wall Street are as giddy as the women who’d locked arms across Iranian bridges and around power plants to protect their “civilization.”
~ Addison
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