Markets Plunge 3.5% After False Trump Tariff Pause Report

On Monday morning, a false report claiming that President Donald Trump was considering a 90-day pause in tariffs on all countries except China sent markets into a frenzy. The unverified rumor originated from an anonymous account on X, named Walter Bloomberg, which boasted over 844,000 followers but was not affiliated with any news outlet. The post, which was later deleted, cited White House National Economic Council Director Kevin Hassett as the source of the information. The claim quickly went viral, sparking widespread sharing and speculation.

Within minutes of the post, the news was cited on live television, causing an immediate and dramatic reaction in the markets. Stocks surged as much as 8% in seconds, only to crash 3.5% moments later when the White House intervened to clarify that the report was false. The White House described the claim as "fake news," and Hassett himself had not made any such statement during his earlier appearance on Fox & Friends. When asked about the possibility of a 90-day tariff pause, Hassett had responded vaguely, stating that the president would make his own decisions.

The market turmoil was part of a broader three-day sell-off, with the S&P 500 down 4% on the day and nearly 13% since Thursday, marking its steepest drop since the 2008 financial crisis. The Dow Jones Industrial Average plunged 1,363 points, following two consecutive 1,500-point collapses. The NASDAQ shed another 4%, bringing its losses from recent highs to 26%.

The false report highlighted the sensitivity of markets to any news related to tariffs and trade policies. The rapid reversal of gains within 15 minutes underscored the volatility and uncertainty that had gripped investors. The White House's swift denial of the rumor helped to stabilize the situation, but the incident served as a reminder of the potential impact of misinformation on financial markets. The markets continued to experience significant swings as investors grappled with the implications of the tariff policies and the broader economic outlook.