S&P 500 Surges 2.5% On Trump Tariff Pause Rumors

Rumors of a 90-day pause in tariffs by President Trump sparked a brief rally in the markets. The speculation was fueled by comments from one of Trump's advisors, Kevin Hassett, who suggested that the President might be reconsidering the tariffs. Hassett's remarks, which were not a firm commitment, indicated that the tariffs would have a limited impact on the economy. This news quickly circulated, leading to a significant rally in traditional markets, with the S&P 500 experiencing a sharp increase. However, the rally was short-lived as the White House swiftly denied any plans for a 90-day pause, confirming that the tariffs were still set to begin in two days.

This episode highlights the market's sensitivity to trade policy developments and the ongoing negotiations between the U.S. and other countries. The brief rally and subsequent fall underscore the market's desperation to regain bullish momentum and avoid a potential recession. Traders are closely monitoring the situation, hoping for any signs of relief from the tariff threat. The market's reaction to the rumors also reflects the broader economic concerns and the impact of trade policies on global markets.

The White House's denial of the 90-day pause rumors has brought the market back to reality, with traders now focusing on the impending tariffs and their potential consequences. The situation remains fluid, and any further developments in the trade negotiations could have significant implications for the markets. Investors are advised to stay informed and prepared for potential volatility as the situation unfolds.