Barron's Warns Market Rally on Trump Retreat May Fade as Geopolitical Risks Linger

A market rebound this week, dubbed the "TACO" (Trump Always Chickens Out) effect following President Trump's softened stance on acquiring Greenland, may be short-lived as underlying geopolitical tensions remain unresolved, Barron's warns. The Dow Jones Industrial Average fell 0.5% last week, the S&P 500 dropped 0.4%, and the Nasdaq Composite declined 0.1%, masking earlier volatility. While strong U.S. economic data, including Q3 GDP growth of 4.4%, provided support, analysts caution the market remains fragile and headline-driven. The focus now shifts to upcoming Q4 earnings from major tech firms like Apple (AAPL-US), Microsoft (MSFT-US), and Meta (META-US). Meanwhile, persistent risks—from Greenland to U.S.-Iran tensions—have fueled a safe-haven rush, sending silver up 43% year-to-date and gold 15% higher in January.