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Stock markets surged Tuesday, with the S&P 500 experiencing its largest increase in weeks, rising over 2 percent. Analysts linked this to President Trump's postponement of a threatened 50 percent tariff on European Union goods. The temporary reprieve follows a pattern some call the "TACO" trade (Trump Always Chickens Out), where market drops after tariff threats are reversed when Trump backs down. Initial market declines on Friday, following the initial threat, were predicted by some analysts to be short-lived due to the potential self-harm of such tariffs.

Prepared by Christopher Adams and reviewed by editorial team.