It’s been a rocky year for investors, but one bank is betting that 2025 will end on a rosier note.

A group of Deutsche Bank strategists upped their forecast for the S&P 500 this week, suggesting the index could surge 10% this year to a record high. The prediction boost was tied to an idea gaining momentum on Wall Street: President Donald Trump often backs down from his biggest tariff threats.

Some investors are trading based on this premise, referred to as TACO, which stands for “Trump Always Chickens Out.” The S&P 500 has risen 20% since April 8, when it closed at a 12-month low before Trump announced a pause on most of his “Liberation Day” tariffs.

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Investors and everyday Americans have soured on Elon Musk. In a new poll, 51% of people said they’d view Tesla more favorably if Musk were replaced as CEO. And some of the company’s biggest shareholders, including unions whose members participate in pension funds, believe the electric vehicle maker’s board is to blame.

To power its multibillion dollar generative AI initiatives, Facebook parent Meta inked a deal with Constellation Energy, the largest nuclear power plant operator in America, to purchase 20 years’ worth of energy from a single plant. Though financial terms were not disclosed, Constellation’s shares surged after the announcement, as the company has been one of the biggest winners on Wall Street due to AI’s transformation of the business world.

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