U.S. stocks advanced and the dollar rebounded on Tuesday as investors weighed progress in ongoing U.S. tariff talks and lowered economic expectations ahead of Friday's crucial U.S. employment report.

U.S. stocks are drifting, and financial markets worldwide are holding relatively steady as the wait continues for more updates on President Donald Trump’s tariffs and how much they’re affecting the economy.

Wall Street's main indexes opened mixed on Tuesday as investors awaited possible negotiations between the United States and its trading partners for more clarity on the tariff war that has roiled financial markets for months.

Wall Street loves a catchy acronym, and the “TACO trade” has captured the mood, as investors and analysts attempt to make sense of the roller-coaster market action that has followed President Donald Trump’s sweeping tariff threats and subsequent walk-backs.

Donald Trump’s inconsistent tariff policies have drawn criticism and mockery from Wall Street, with financial experts coining the term “TACO Trade” to describe his tendency to threaten tariffs and then back down.