Investors speculate President Trump will ease trade policies, leading to stock market optimism despite lingering concerns over tariffs’ potential impact. European Union, Mexico, and Brazil face renewed pressure. Market watchers anticipate trade policy uncertainty to persist. Deutsche Bank analysts mention the TACO Trade theory predicting Trump’s policy pivot. ClearBridge Investments foresees tariffs impacting corporate profits in the second half of the year. Bank of America analysts note tariff de-escalation’s impact on S&P 500 earnings. Market volatility persists due to uncertainty around trade deals, prompting concerns over potential negative impacts on stocks.

Read more at Yahoo Finance: Can Investors Keep Counting on the TACO Trade?