One way to frame this is that markets are treating Trump’s second-term economic policy as aggressive but ultimately bounded, and Trump is signaling those bounds in ways that reassure key constituencies, creating the circular relationship you’re describing.[1][2]
Another explanation concludes that when proximity to political power becomes the main competitive strategy, firms rationally shift from innovation to extraction and protection, and the system drifts from competitive capitalism toward oligarchy or “crony capitalism.” [1][2][3][4]