Stock market swings wildly after fake news on Trump tariffs

On April 7, 2025, false reports that President Donald Trump was considering a 90-day pause on tariffs created substantial volatility in the U.S. stock market. The rumors emerged after an interview with Kevin Hassett, the National Economic Council Director, in which his comments were misinterpreted and amplified on social media and by financial news outlets. The stock market initially rallied in response to this misinformation, with the Dow Jones Industrial Average making a wild swing from a loss of over 1,700 points to a gain of 800 points before ultimately closing down 629 points as the White House quickly quashed the rumors, deeming them 'fake news.' This incident highlighted the jittery mood among investors surrounding Trump’s ongoing and sweeping tariff strategy, as stocks swung wildly, reflecting deep concerns about the potential impact of such tariffs on the global economy. The chaotic trading day followed a disastrous closing on the previous Friday, where the Dow suffered a nearly unprecedented loss of 2,231 points, marking the worst week for the stock market since the year 2020. The market responses also underscored the fragility of investor confidence in light of Trump's tariff policies, which he framed as necessary for economic liberation. Trump stated that countries were responding with negotiations, guaranteeing fair trade while asserting that the United States was benefiting from the tariffs already in place. The brief lift in the market due to the unfounded claims is a reflection of just how sensitive investors are to any potential changes or rumors regarding government policies in relation to trade, especially given their recent experiences with prior market fluctuations. Ultimately, it became evident that misinformation can drastically influence market behavior, even if only temporarily, without substantiated backing.