April 7, 2025, was another reminder of just how quickly rumors can shake Wall Street. U.S. stock markets went on a rollercoaster after a bogus report spread on X (formerly Twitter), claiming President Donald Trump was considering a 90-day tariff pause for most countries—except China. Within minutes, billions in market value appeared and vanished.
How It Started
The chaos traces back to a Fox News interview with National Economic Council Director Kevin Hassett. When asked about potential tariff changes, Hassett gave a classic political non-answer: “I think the president is going to decide what the president is going to decide.”
That vague reply was enough for a little-known X account, “Hammer Capital” (followers: ~1,100), to spin it into a full-blown rumor: “Trump considering 90-day tariff freeze—excludes China.”
How It Spread
From there, things snowballed. The claim got picked up by “Walter Bloomberg,” a popular finance account with over 850K followers. Soon, big names like Reuters and CNBC ran with the story—before fact-checking.
The result? A $2.4 trillion spike in the S&P 500 in minutes.
The Whiplash Correction
Then, reality hit. The White House shot down the rumor as “fake news.“ Reuters backtracked, admitting they’d relied on CNBC’s unverified headline. And just like that, the market erased all its gains—plus some extra—dropping $2.5 trillion in under half an hour.
Why It Matters
This wasn’t just a blip—it’s a warning. In today’s hyper-connected world, a single tweet can send markets into a frenzy before anyone checks if it’s true. News outlets, traders, and social media platforms all play a role in either slowing the spread of misinformation… or speeding it up.
One thing’s clear: In 2025, the market doesn’t just move on earnings reports or Fed decisions—it moves on rumors, retweets, and rapid-fire corrections. Investors, consider this a wake-up call.
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