Extreme Volatility in the Stock Market

The stock market experienced extreme volatility following unfounded claims about President Donald Trump contemplating a 90-day halt on tariffs. These erratic swings saw major indexes plunging and then surging, only to falter again within minutes.

Market Movements Following Rumors

Around 10:30 a.m., a sudden upswing occurred with the Dow Jones Industrial Average sharply rising, momentarily recouping losses, before plummeting back down by 629 points. The S&P 500 also recorded a similar spike early on Monday.

The Source of the Rumors

The chaos was ignited by purported comments from National Economic Council Director Kevin Hassett, who was reported to have said that the president was considering pausing tariffs for all countries except China. However, this assertion was quickly refuted. White House Press Secretary Karoline Leavitt dismissed the speculation as "fake news," leading to a swift retreat in market gains.

Interview Sparks Confusion

The misleading rumors seemed to have emanated from an interview Hassett conducted on Fox News. When questioned about the likelihood of a 90-day pause, suggested by billionaire investor Bill Ackman, Hassett stated, "I think that the president is going to decide what the president is going to decide." He further advised a moderation of rhetoric, particularly for Ackman.

Recent Market Downturns

Monday's market turmoil follows a stark downturn at the end of last week, which saw the Dow suffering a loss of 2,231 points—a historic drop that marked one of the worst single days for the stock market since 2020. The S&P 500 faced a 6 percent decline, while the broader market wrapped up a week that resulted in the largest weekly loss since the pandemic started, with the Dow experiencing a 2,000-point fall for only the fourth time ever.

New Tariff Announcement

This financial tremor comes on the heels of Trump’s announcement of a blanket 10 percent tariff on imports from most countries—Russia excluded—during what he deemed "America’s Liberation Day." Some nations faced tariffs significantly exceeding the 10 percent baseline.

Economic Forecasts