"TACO trading" continues to dominate the market

Wallstreetcn
2025.06.21 01:21
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Despite facing multiple uncertainties such as trade wars, disagreements within the Federal Reserve, and geopolitical crises, the volatility indicators have decreased. Bloomberg pointed out that the "TACO trade" effectively suppressed stock volatility, especially under the influence of Trump's trade remarks and the situation in the Middle East. The market's expectations regarding the political situation have receded, leading to a decline in risk premiums, a normalization of the volatility index, and a sell-off in short-term volatility bonds