S&P 500 whipsawed after tariff pause rumor debunked

Published 07/04/2025, 15:52
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com -- The S&P 500 experienced a tumultuous trading session on Monday, initially plummeting by 4% before rebounding and trading about 1% higher. The sudden surge followed a brief period of confusion caused by a circulated rumor, which was later confirmed as fake news, regarding a potential 90-day pause in tariffs for all countries except China.

The market's rollercoaster ride began when a headline from an undisclosed source, claiming that "HASSETT: TRUMP IS CONSIDERING A 90-DAY PAUSE IN TARIFFS FOR ALL COUNTRIES EXCEPT CHINA," was picked up by CNBC. This news led to a brief surge in optimism among investors, as it suggested a possible de-escalation in trade tensions that could have had positive implications for global commerce and economic growth.

However, the White House quickly addressed the rumor, labeling it as "wrong" and dismissing the headline as fake news. The clarification came after National Economic Council Director Kevin Hassett appeared on Fox, where he was questioned about the possibility of a 90-day tariff pause. Hassett's non-committal response, stating that "the president is going to decide what the president is going to decide," was apparently misconstrued, leading to the erroneous headline.

Despite the correction, the S&P 500 managed to pare back some of its losses and was down only 1%. The incident underscores the market's sensitivity to news related to trade policy, which has been a significant driver of volatility in recent times.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.