Fake Trump Tariff Pause News Sends S&P 500 Up 3.36%

On April 7, 2025, a false report claiming that US President Donald Trump was considering a 90-day pause in his tariff war against China sent shockwaves through the US stock market. The S&P 500 index surged by over 3.36% between 9:30 AM and 10:30 AM (UTC-4), reaching a peak of $5,249.28. This sudden spike was triggered by the fake news, which was later denied by the White House. The market's reaction was swift and severe, with the S&P 500 index dropping from $5,076.52 to $4,956.34 within 30 minutes of the White House's denial.

The Bitcoin market followed a similar trend, with the price of BTC rising to $81,251 and then falling to $78,016.40 after the White House's denial. This event highlights the sensitivity of both traditional and crypto markets to political developments and macroeconomic sentiment. The sharp reaction to fake news shows how closely the crypto market is tracking traditional markets, with prices driven by sentiment rather than fundamentals.

Despite the market volatility, both the S&P 500 and Bitcoin markets rebounded by the close of April 7. The S&P 500 was at least 4.67% above the lowest point of the day, while the Bitcoin market witnessed a rise of approximately 0.91%. This suggests that investors are eager to get back into the market, even in the middle of bad news, and that oversold conditions are drawing money back into the market quickly.

The market's reaction to the fake news also reveals the interconnectedness of global markets and the potential for a global economic slowdown. The tariffs, which were seen as an aggressive move to bring manufacturing jobs back to the United States, had far-reaching implications for the global economy. The market's volatility was a clear indication of the uncertainty that surrounded Trump's trade war, as investors struggled to gauge the ultimate goal of his tariff plans.

This event also highlights the potential risks and opportunities for traders in the crypto market. As long as traditional markets swing wildly on sentiment, crypto may continue to mirror those moves, offering both risks and opportunities for traders. The quick rebound in both the S&P 500 and Bitcoin markets suggests that investor interest in crypto remains strong, especially during volatility.