Finance
Trading Day: Taco Back on the Menu
Published by Global Banking & Finance Review®
Posted on March 23, 2026
4 min readLast updated: March 23, 2026
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Published by Global Banking & Finance Review®
Posted on March 23, 2026
4 min readLast updated: March 23, 2026
Add as preferred source on GoogleOil prices plunged and U.S. stocks rebounded on March 23, 2026, after President Trump delayed military strikes on Iranian power plants amid early diplomacy, easing fears over energy-supply disruption and boosting risk appetite.
By Jamie McGeever
ORLANDO, Florida, March 23 (Reuters) - Oil sank and U.S. stocks rose on Monday on hopes that an end to the Middle East war could be in sight after U.S. President Donald Trump delayed military strikes on Iran's power plants and indicated that early talks with Tehran have been held.
In my column today I look at why, for now at least, U.S. consumers can cope with $100-a-barrel oil - household balance sheets are in rude health and, perhaps surprisingly, gasoline and energy products account for a mere 2% of total consumption.
If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
Whether the U.S. postponing strikes on Iran's energy complex marks the beginning of the end of the war or has a lasting market impact remains to be seen. But Monday's sudden rebound in risk appetite shows how much investors are hoping it proves to be the latest "Trump Always Chickens Out" signal to buy.
The natural bias toward "TACO" trades is understandable, although in this case, caution is still required. The damage done to oil and LNG supply, facilities, and refining capacity will take months to fully heal, and the world will be living with high energy costs for even longer.
Gold's plunge since the Middle East conflict erupted nearly a month ago has been remarkable, and raises an uncomfortable question for investors: is there such a thing as a safe-haven asset any more?
If gold can't shine amid war, a global oil shock, falling stock markets and rising inflation, where can investors turn? Perhaps gold has become just another speculative asset, and the "one size fits all" concept of a safe haven is gone. In times of crisis, investors now have to be more nimble, flexible, and think outside the box.
As the global energy shock rolls into its fourth week, revised growth and inflation forecasts are starting to trickle in. The trajectories are no surprise, but the numbers do highlight the tough position central bankers find themselves in.
"3% inflation is here to stay", say BNP Paribas economists, raising their 2026 U.S. core and headline forecasts to 3.2% and 3.3%, respectively. Goldman's economists reckon high oil and gas prices will add 1 percentage point to global headline inflation over the next year, and subtract 0.4pp from global GDP growth.
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Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
(Reporting by Jamie McGeever; Editing by Nia Williams)
U.S. stocks rose and oil prices fell due to hopes that Middle East war tensions would ease after President Trump postponed strikes on Iran and signaled possible early talks.
Gasoline and energy products account for only about 2% of total U.S. consumption, making the impact of high oil prices more manageable for consumers.
The 'TACO' trade refers to investors' tendency to buy on the perception that President Trump will avoid escalation, which increases risk appetite in markets.
Consumer discretionary, technology, and energy sectors led the S&P 500 gains; airlines and cruise operators also outperformed, while Estee Lauder dropped.
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