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From ‘Taco’ to ‘Nacho’: the new buzzword on Wall Street as Trump preps for China trip
Traders’ catch-cry ‘Not a chance Hormuz opens’ replaces ‘Trump always chickens out’ as grim predictions swirl over gridlock, oil prices
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With a fragile US-Iran ceasefire barely holding, the Strait of Hormuz still blockaded, and all eyes on the upcoming Trump-Xi meeting, investors are embracing a new market narrative: “Nacho”.
The acronym – short for “Not a chance Hormuz opens” – reflects a growing bet on prolonged gridlock and high oil prices.
This marks a sharp pivot from last year’s dominant trade tactic, “Taco” – “Trump always chickens out”, which was born in the chaos of Trump’s tariff blitz and relied on the assumption that the President would ultimately back down.
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Now, the old recipe no longer works – and Wall Street is trading chips for Nachos.
What is Nacho?
The term gained traction after Bloomberg columnist Javier Blas shared it on social media in late April, attributing the phrase to a trader.
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