Analysts warn the TACO trade won’t last forever after an Iran ceasefire wipes out weeks of losses in markets

President Donald Trump again stepped back from the brink, and traders are cashing in on what they called “TACO Tuesday.”

After threatening that “a whole civilization will die tonight” early Tuesday, just two hours before his 8 p.m. deadline, Trump announced a two-week ceasefire on the condition that Iran reopen the Strait of Hormuz and restart the flow of oil. While doubts remain about the agreement and whether oil flows will actually restart, the president’s about-face still managed to lift markets.

A $1.5 trillion rally lifted all three major indexes and brought some optimism to markets following weeks of uncertainty over Middle East turmoil. Oil fell by 16% to below $100 per barrel while equities surged. The Nasdaq led gains with a 3.55% jump, followed by a 2.7% increase for the S&P 500, and a 1,200 point, or 2.6% bump, in the Dow Jones industrial average. The surge reversed week...