S&P 500 Sees $3 Trillion Swing After False Tariff Pause Rumor

On Monday, the U.S. stock market experienced significant fluctuations, with the S&P 500 index witnessing a $3 trillion surge following a rumor that the White House was considering a 90-day pause on all tariffs. This rumor, which circulated on the social media platform X, attributed to White House National Economic Council Director Kevin Hassett, caused a substantial market reaction. However, the rumor was swiftly debunked by CNBC, which reported that no one at the White House had knowledge of such a pause. The White House itself posted on X, labeling the rumor as "fake news." This correction led to a sharp decline in the S&P 500, erasing the entire $3 trillion gain within just 30 minutes. The move was described as the largest 30-minute swing in market cap ever witnessed.

Half an hour after the rumors were dispelled, President Trump took to Truth Social to announce that the U.S. would impose an additional 50% tariff on China, on top of the existing 34% tariff, unless China withdrew its retaliatory 34% tariffs by April 8th, 2025. Trump's statement also indicated that all talks with China would be terminated if this condition was not met, and negotiations with other countries would commence immediately. This announcement added to the market volatility, as investors grappled with the uncertainty surrounding trade policies.

The market's reaction to these events underscores the sensitivity of investors to trade policy developments. The rapid and significant swings in market value highlight the impact of geopolitical tensions and policy announcements on financial markets. The situation also reflects the broader economic implications of trade disputes, which can affect not only stock markets but also other financial sectors, including cryptocurrency markets. The crypto markets also experienced a significant downturn, with over $1.64 billion in liquidations reported in the last 24 hours, and Bitcoin trading at $78,350 at the time of writing. This event serves as a reminder of the interconnected nature of global financial markets and the potential for rapid and substantial market movements in response to policy changes and geopolitical developments.