Why the ‘TACO' Trade Is Tempting Investors Amid US-China Talks
On May 30, US President Donald Trump accused his Chinese counterpart, President Xi Jinping, of breaking a trade truce that brought down tariffs from extreme highs in early May. Investors saw the writing on the wall: tariffs would spike again, hurting the economy. Stocks fell more than 1%. But later the same day, Trump said he'd have a conversation with Xi, and optimism – and stock prices – were restored. When the call finally happened on June 5, the S&P 500 Index again briefly surged.
The early months of Trump's second term have been marked by this pattern: The president threatens to impose sky-high tariffs and stocks tumble, then he relents and markets recover. Wall Street has learned to capitalize on this by buying into the S&P 500 when it first drops, anticipating the president will backtrack on tariffs and send markets higher.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
10 minutes ago
- Business Insider
Trump signs Executive Order to ‘unleash American drone dominance'
President Donald Trump signed an Executive Order to 'ensure continued American leadership in the development, commercialization, and export of unmanned aircraft systems – otherwise known as drones,' the White House announced. 'The Order directs the Administrator of the Federal Aviation Administration to expand drone operations by enabling routine 'Beyond Visual Line of Sight' drone operations for commercial and public safety missions, and to accelerate the development, testing, and scaling of American drone technologies, including advanced air mobility and autonomous operations. The Order establishes an electric 'Vertical Takeoff and Landing' integration pilot program to accelerate the deployment of safe and lawful vertical operations in the United States, selecting at least five pilot projects to advance applications like cargo transport and medical response,' the White House stated. Companies working on drones or low-altitude urban aircraft known as eVTOLs include AeroVironment (AVAV), Joby Aviation (JOBY) and Archer Aviation (ACHR). Confident Investing Starts Here:
Business Insider
10 minutes ago
- Business Insider
Ford Stock (NYSE:F) Gains with Better Access to Rare Earths
One of the biggest supply chain problems for companies like legacy automaker Ford (F) is the access to rare earth minerals of the kind commonly used in electric vehicles. But a new report says that getting those rare earths out of one of their biggest sources, China, will actually be a little easier now. That news made investors breathe a little easier themselves, and shares were up nearly 2% in Friday afternoon's trading. Confident Investing Starts Here: China has brought out a set of temporary export licenses, reports note, which will offer up access to rare earths for each of the Big Three automakers, which include General Motors (GM) and Stellantis (STLA) as well. Reports note that at least some of the licenses are valid for the next six months, which should keep the lot of them in rare earths for some time to come. But it was hard not to notice that this change came just after a recent phone call between President Trump and President Xi Jinping, suggesting that that was part of some larger deal between the two. The move to restrict the supply of rare earth minerals has left many companies scrambling to fill in the supply gaps, and left many considering China a major bottleneck in the supply chain. With China producing about 90% of the world's supply, it is clear that they have the whip hand when it comes to these elements. We're All Getting Concerned About These Recalls You have likely noticed by now that the news around here, when it comes to Ford, seems to reference 'recall' a lot lately. Granted, some of these recalls have been minor to say the least; recalls that impact a handful of cars, or that are fixed with a software update. But not all of them have been so trivial, and some are starting to wonder if Ford's quality issues are starting to flare back up again. Daniel Ives, analyst with Wedbush Securities—who has a four-and-a-half star rating on TipRanks—recently noted that Ford was in a 'code-red situation…after a disaster quarter.' Rising warranty costs connected to all these recalls were hurting Ford, much as they did last year at this time. And with more recalls seeming to crop up, that could indeed prove a problem. However, bear in mind that the recalls are not all problems, especially when software is involved. So while Ford's recall count is on the rise, many of these recalls are much more simply addressed than they once were. Is Ford Stock a Good Buy Right Now? Turning to Wall Street, analysts have a Hold consensus rating on F stock based on two Buys, 12 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 16.87% loss in its share price over the past year, the average F price target of $9.71 per share implies 5.18% downside risk.
Business Insider
25 minutes ago
- Business Insider
Trump signs Executive Order intended to ‘strengthen the nation's cybersecurity'
President Donald Trump signed an Executive Order to strengthen the nation's cybersecurity by 'focusing on critical protections against foreign cyber threats and enhancing secure technology practices,' the White House announced. The Order 'amends problematic elements of Obama and Biden-era Executive Orders' and directs the Federal government to advance secure software development, the White House stated. Publicly traded companies in the cybersecurity space include Check Point (CHKP), CrowdStrike (CRWD), CyberArk (CYBR), F5 Networks (FFIV), Fortinet (FTNT), Gen Digital (GEN), Okta (OKTA), Palo Alto Networks (PANW) and Qualys (QLYS). Companies working in the quantum computing space include D-Wave Quantum (QBTS), Quantum (QMCO), Rigetti Computing (RGTI), Sealsq (LAES), Quantum Computing (QUBT) and Honeywell (HON). Confident Investing Starts Here:
