How a false Trump tariff pause headline moved $2.4 trillion on Wall Street

US media outlets mistakenly flashed a false news claiming the Trump administration was considering a 90-day pause on tariffs for all countries except China

A misleading report suggesting that US President Donald Trump was considering a 90-day pause on tariffs sparked a dramatic stock market swing on Monday, briefly adding $2.4 trillion in value before erasing it within minutes.

 

The headline read: “HASSETT: TRUMP IS CONSIDERING A 90-DAY PAUSE IN TARIFFS FOR ALL COUNTRIES EXCEPT CHINA.” This was an apparent reference to White House Economic Council Director Kevin Hassett.

 

The incident unfolded within a 30-minute window as the rumour circulated on social media, triggering a surge in investor optimism before an official White House denial swiftly reversed the gains.

 

Market rise and sudden crash

The misleading headline first appeared on social media at approximately 10:10 am New York time. This sent stock indexes soaring, with the S&P 500 reversing early losses of 4.7 per cent to gain 3.4 per cent in just 10 minutes, adding approximately $2.4 trillion in market value, according to Dow Jones Market Data, as reported by The Wall Street Journal.

 

 

However, the rally was short-lived. By 10:41 am, the White House had denied the claim, prompting a sharp decline that wiped out $2.5 trillion in market value within 23 minutes. The S&P 500 ultimately ended the day down just 0.2 per cent, but not before experiencing its most volatile intraday swing since March 2020.  ALSO READ | Musk dissatisfied with Trump's tariff? Here's what Tesla boss had to say

 

Where did the false news headline come from?

Hassett on Monday appeared in an interview with Fox News where he backed President Trump's reciprocal tariff plans. Hassett argued that while the tariffs would cause "short-term pain" for consumers, the US would benefit in the long term. He added that more than 50 countries had already approached the US to begin trade talks.

 

When asked if Trump would consider a 90-day pause on tariff - a statement made by the interviewer. Hassett responded, "I think the President is gonna decide what the president is gonna decide ... even if you think there will be some negative effect from the trade side, that's still a small share of GDP (sic)."

 

The headline gained traction after being posted by the widely followed X account “Walter Bloomberg” at 10:13 am. The account, which is not affiliated with Bloomberg News but frequently shares financial news, later explained that it sourced the information from another X post.

 

“I couldn’t find anything on the main wires at the time. After a quick search on X, I traced the headline to a post by T3 Trading Group, LLC,” the account told The Wall Street Journal. “Given the market movement (+4.5 per cent), I deemed the headline reliable and posted it at 10:13.”  ALSO READ | Trump claims tariffs averted Great Depression, but history disagrees

 

Social media fuelled spread of misinformation

As the headline gained momentum, major media outlets picked it up. CNBC aired the claim live and Reuters, citing CNBC, published the same claim shortly afterwards. CNBC later admitted that an internal misunderstanding led to the information being displayed on-screen without verification.

 

White House clarifies on 90-day tariff pause rumour

 

As CNBC aired the incorrect news, the Trump administration quickly responded. "The White House is not considering a 90-day tariff pause. This is an unsubstantiated rumor, which has been rejected by the Trump administration," the official statement read.