NEW YORK: A bogus rumor that President Donald Trump was considering a pause in tariffs briefly lifted markets Monday before the White House shot down the unfounded reports.
The confusion — which was amplified on social media and by some traditional media outlets — lasted less than a half hour but reflected a jittery mood on Wall Street as stocks plunged over worries that Trump’s tariffs could torpedo the global economy.
The origin of the false report was unclear but it appeared to be a misinterpretation of comments made by Kevin Hassett, director of the White House National Economic Council, during a Fox News interview earlier Monday morning.
Asked whether Trump would consider a 90-day tariff pause suggested by a prominent hedge fund manager, Hassett said “I think the president is going to decide what the president is going to decide.”
Nearly two hours later, multiple user accounts on social media platform X posted identical messages claiming Hassett said Trump is considering a pause for all countries except China. Stock traders and some news outlets picked up the story, and the market skyrocketed on the hint of good news.
The Dow Jones Industrial Average briefly erased a morning loss of 1,700 points, shot up more than 800 points and then went back to a loss of 629 points. The S&P 500 likewise made sudden up-and-down lurching movements.
The White House initially appeared as confused as everyone else. But after 20 minutes, a government account rejected the report as “fake news.”