‘Risk-on’! Stocks jump as EU and Japan trade deals give markets the certainty they crave
Investment
Fortune

‘Risk-on’! Stocks jump as EU and Japan trade deals give markets the certainty they crave

July 24, 2025
10:24 AM
4 min read
AI Enhanced
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Key Takeaways

The TACO trade (Trump Always Chickens Out) appears to be in full effect, for anyone who was long on stocks.

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4 min read

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investment

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Published

July 24, 2025

10:24 AM

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Fortune

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Key Topics
financemarketsstockstradingfinancialcyclicaltechnologymarket cycles

Re suggests that It's worth noting that Finance·‘Risk-on’

Stocks jump as EU and Japan trade deals give the certainty they craveBy Jim EdwardsBy Jim EdwardsExecutive Editor, Global NewsJim EdwardsExecutive Editor, Global NewsJim Edwards is the executive editor for global news at Fortune, in today's market environment

He was previously the editor-in-chief of Insider's news division and the founding editor of Insider UK

His investigative journalism has changed the law in two U

Federal districts and two states

Additionally, Supreme Court cited his work on the death penalty in the concurrence to Baze v (this bears monitoring), in today's market environment

Nevertheless, Rees, the ruling on whether lethal injection is cruel or unusual (quite telling)

Nevertheless, Conversely, He also won the Neal award for an investigation of bribes and kickbacks on Madison Avenue, amid market uncertainty

SEE FULL BIO Goldman Sach's "Risk Appetite Indicator" is now back in positive territory, amid market uncertainty

Marcin Golba—NurPhoto via Getty Images rallied as the U, given the current landscape

Moved closer to trade deals with Japan and the EU, bringing much-certainty after months of President Trump’s volatile tariff threats (something worth watching)

The S&P 500 hit a new record and futures are up prior to the opening bell

In contrast, Stocks rose across Europe and Asia this morning

With uncertainty easing, investor risk appetite has increased, according to Deutsche Bank and Goldman Sachs, in today's financial world

Furthermore, Meanwhile, The S&P 500 dered yet another new record high yesterday, closing up 0. 8% at 6,358

S&P futures are calling for more gains this morning

In Europe, Japan, and China are all up this morning

Because the uncertainty caused by Trump’s tariff negotiations / threats / demands / letters is finally ing away

Furthermore, Furthermore, Yesterday digested the posed trade deal with Japan (15% tariffs plus some other stuff) and this morning there are reports that the EU is closing on a deal (again, 15% tariffs plus some other stuff)

Those rates are half what Trump initially posed, in today's market environment

The TACO trade (Trump Always Chickens Out) appears to be in full effect, for anyone who was long on stocks

Japan and Europe are two of the U. ’s largest trading partners and now that the have some certainty around trade, it’s back to “risk-on” for investors, according to Jim Reid’s team at Deutsche Bank. “The risk-on tone has continued over the last 24 hours, with the S&P 500 (+0 (which is quite significant). 78%) at a fresh record thanks to growing optimism that more trade deals would be reached before August 1, considering recent developments

Market analysis shows initial catalyst was the US-Japan deal we woke up to this time yesterday, with both European and US risk assets rallying as they caught up to the news (this bears monitoring), in today's financial world

Meanwhile, But around the time that European were going, an FT headline said that the EU and the US were closing in on a similar deal that would also put 15% tariffs in place,” he wrote. “If a 15% total rate inclusive of existing tariffs is agreed as suggested, this would mark only a marginal increase compared to the 10% additional tariffs that EU exports to the US have faced since Liberation Day but with certainty the future. ” The key word there is “certainty”

It’s what the want (which is quite significant)

The other uncertain issue that’s now in the rearview mirror is Trump’s fiscal spending/debt bill. “The passage of the ‘One Big Beautiful Bill’ removes one major source of policy uncertainty by extending key expiring visions of the Tax Cuts and Jobs Act (TCJA), thereby averting a fiscal cliff worth 1% of GDP in 2026–27,” Gregory Daco at Parthenon-EY told clients (something worth watching)

With certainty back on the table, “risk appetite is up,” according to Christian Mueller-Glissmann and Andrea Ferrario at Goldman Sachs

The bank’s prietary “Risk Appetite Indicator” had been floundering below -1 on the scale for much of the year but has now poked its head back into positive territory

Furthermore, Here’s a snapshot of the action prior to the opening bell in New York: S&P 500 futures were flat this morning, premarket, after the index closed up 0. 78% yesterday

Additionally, STOXX Europe 600 was up 0. 58% in early trading

The UK’s FTSE 100 was up 0

On the other hand, 85% in early trading

Nevertheless, Japan’s Nikkei 225 was up 1

China’s CSI 300 Index was up 0

Furthermore, On the other hand, India’s Nifty 50 was down 0

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