Did Trump just pull a ‘TACO’ on Iran? Why markets will remain volatile, even if investors see some relief from the selling this week.

U.S. stock futures reversed sharply Monday after President Trump signaled potential de-escalation with Iran, erasing a 400-point Dow loss and triggering a 1,000-point gain by market open. Global markets initially plunged overnight as crude oil surged and Asian equities—Japan and South Korea—fell amid escalating Iran tensions, reflecting investor fears of prolonged conflict. The abrupt 1,400-point Dow futures swing underscores extreme market sensitivity to geopolitical risks, with traders reacting instantly to perceived shifts in U.S. foreign policy stance. Analysts warn volatility will persist despite short-term relief, citing unresolved Middle East tensions and uncertainty over Trump’s long-term strategy, dubbed a “TACO” maneuver by commentators. The rebound suggests temporary optimism, but underlying instability—fueled by energy price spikes and geopolitical unpredictability—keeps investors on edge for further disruptions.