KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Despite U.S. President Donald Trump turning up the heat with fresh 15%-20% tariff threats on the European Union ahead of his Aug. 1 trade deadline, the stock market has barely flinched.
📉April's "Liberation Day" meltdown? Yes, we remember.
Today’s vibe? More of a shrug.
So… why are investors staying calm this time around? Here are the 3 key reasons:
1. “TACO Trade” – Trump Always Chickens Out
Yep, it’s actually a thing.
Coined by a Financial Times columnist, the “TACO Trade” is based on a pattern:
Trump talks tough, markets wobble, then he backs down.
It happened in April when a market meltdown forced a 90-day tariff delay.
Now, even with markets near record highs, many investors believe this is just another hardball negotiation tactic to speed up trade talks.
“The expectation is that tariffs will be lowered once negotiations are done,” said Dennis DeBusschere of 22V Research.
2. The Courts Might Stop Him Anyway
Back in May, two federal courts ruled Trump’s earlier tariffs were unconstitutional.
Although a temporary injunction kept them alive, legal experts and investors believe new tariffs could quickly be challenged and blocked.
Bottom line? Even if Trump pulls the trigger, the courts may defuse the bomb.
3. Markets Are Laser-Focused on Earnings and the Economy
Earnings season is off to a hot start—83% of S&P 500 companies have beaten estimates so far—and economic data on jobs and consumer spending continues to shine.
Even Trump’s “One Big Beautiful Bill Act” has lifted investor confidence by removing fiscal uncertainty.
With strong corporate results, a stable consumer, and clearer tax guidance, investors are betting on fundamentals, not fear.
The S&P 500 and Nasdaq ended the week higher, while the Dow dipped slightly—proof that markets aren’t sweating the headlines just yet.
But with Aug. 1 around the corner… will “TACO” hold again? Or will Trump finally take a bite?
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