Wild Wild West: S&P 500 jumped 7% Monday on 'fake news'

Published 07/04/2025, 15:56
© Reuters

Investing.com -- Monday's trading session saw an abrupt shift in the trajectory of Wall Street's main indexes following an unconfirmed report from the White House that a 90-day pause on tariffs was under consideration.

White House refuted these claims around 30 minutes later, denying that The National Economic Council Director Kevin Hassett had previously hinted in an interview on Fox News that President Donald Trump might contemplate such a pause, but did not confirm any decisions.

The markets initially responded positively to Hassett's comments, with stocks briefly moving into the green on the prospect of eased trade tensions. However, this optimism was short-lived as the White House quickly labeled the report as "fake news," leading to a downturn in the stock market.

As of 10:50 a.m. EST (14:50 GMT), the S&P 500 was down 80 points, or 1.5%. Both the Nasdaq and the S&P 500 had been down about 4% earlier in the session before an unconfirmed rumor surfaced on the social media platform X.

After the reports began circulating, the S&P 500 rebounded as much as 3% before the White House quickly stepped in to deny them.

 

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