CNBC Daily Open: Will the State of the Union address bring another 'TACO' moment?

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Taken from CNBC’s Daily Open, our international markets newsletter — Subscribe today

The term “TACO” or “Trump Always Chickens Out” has been bandied around every time the U.S. president has announced strong policy actions, only to walk back following a strong negative reaction from the market.

As such, will Donald Trump’s State of the Union address lead to another round of the TACO trade? Investors have largely shrugged off Trump’s imposition of Section 122 tariffs globally, so the incentive to water them down is less for the U.S. president, though clarity on how they will work could be a positive for markets.

Experts told CNBC that “people are now used to his little explosions,” and investors have “bigger issues to grapple with,” such as artificial intelligence.