Markets React to False Tariff Pause Rumors, Stocks Swing Wildly

On Monday, a false report suggesting President Trump was considering a 90-day pause on tariffs briefly caused U.S. stocks to surge, reversing an earlier steep decline. The rumor originated from a misinterpretation of comments made by White House economic adviser Kevin Hassett but was quickly debunked by the White House, which labeled it as 'fake news.' Despite the initial spike, stocks fell back after the clarification, illustrating the extreme volatility in the market fueled by tariff-related news. The incident highlights traders' sensitivity to trade policy changes, particularly following significant recent losses in the stock market. The confusion reflects a jittery economic climate where investors are on high alert for any developments regarding tariffs and trade negotiations. As the market fluctuated, discussions about potential negotiations with various countries regarding tariffs continued, underscoring ongoing trade tensions, particularly with China.