US Stocks' Iran Playbook Cracks as 'TACO' Trade Wobbles
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Wall Street's long-running assumption that Trump ultimately backs off Iran threats has underpinned repeated dip-buying in US stocks since early spring.
That pattern faltered in September, forcing traders to reprice geopolitical risk premiums across major equity indices rather than fade every headline.
With the so-called TACO trade now in question, US stocks face a less predictable reaction function to Middle East escalation, raising volatility risk into the fourth quarter.