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A misleading rumor that President Donald Trump might temporarily halt tariffs sent shockwaves through the markets on Monday, briefly reversing a major slump before the White House stepped in to deny the claim.
Investors, already nervous over escalating trade tensions, reacted swiftly to the false story, which gained momentum on social media and some mainstream news channels.
Misinterpretation Sparks Market Hopes
The confusion seemed to stem from comments made by Kevin Hassett, director of the White House National Economic Council, during a Fox News appearance earlier in the day.
When asked about a suggestion from a well-known hedge fund manager to pause tariffs for 90 days, Hassett replied, “I think the president is going to decide what the president is going to decide.”
Roughly two hours later, multiple posts surfaced on social media platform X, all echoing the same claim — that Trump was considering a pause in tariffs for every country except China.
The rumor quickly caught fire among traders and some news sites. Optimism surged.
Markets reacted sharply. The Dow Jones, which had been down by 1,700 points, suddenly rebounded by over 800 points before sinking back to a loss of 629.
The S&P 500 also mirrored the chaos, showing wild swings as investors struggled to make sense of the situation.
White House Steps In to Quell the Confusion
At first, even the White House appeared uncertain about what was unfolding. But within 20 minutes of the market rally, a government spokesperson publicly rejected the story.
The response was blunt — the report was “fake news.”
Though the market calmed somewhat after the clarification, the brief episode highlighted just how volatile Wall Street has become in the face of trade war fears and rapid-fire information cycles.
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