“Fake news” caused wild swings in the stock market on Monday morning. Wall Street experienced chaos as a false report about President Donald Trump’s tariff policy sparked a dramatic series of gains and losses.

 The stock market swung wildly after rumors circulated that Trump was planning a 90-day pause on the recently announced tariffs for all countries except China.

The unverified report, which quickly spread on social media and was picked up by CNBC, caused investors to shift positions rapidly—only for the White House to deny the claim.

White House Slams "Fake News" Report

The market rally occurred around 10:30 a.m. and collapsed just as quickly as it started. National Economic Council Director Kevin Hassett was cited as the source of the tariff pause claim.

White House Press Secretary Karoline Leavitt swiftly denied any such plan, calling the story “fake news.”

The report seemed to stem from a Fox News interview, where Hassett was asked if the administration would consider billionaire investor Bill Ackman's suggestion of a 90-day tariff pause.

“I think that the president is going to decide what the president is going to decide,” Hassett replied. He added, “I would urge everyone, especially Bill, to ease off the rhetoric a little bit.”

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Timeline: Monday’s Market Swings

• Pre-market: Markets were down significantly following last week’s sharp losses.
• 10:30 a.m. ET: Stocks unexpectedly surged. The Dow Jones and S&P 500 turned positive amid reports of a tariff pause.
• Shortly after 10:30 a.m.: The White House denied the report, calling it “fake news.”
• Late morning: The Dow plummeted again, ending with a loss of 629 points.
• End of trading: The S&P 500 and Nasdaq also reversed course and closed lower.

Global Impact of Trump's Tariff Announcement

Last week, Trump announced a sweeping tariff policy applying at least 10 percent tariffs to all countries—except Russia. He referred to the decision as “Liberation Day,” claiming it would protect American interests. Some countries faced tariffs significantly higher than 10 percent.

The markets responded with their worst performance since the early days of the COVID-19 pandemic:

• Copper, iron ore, oil, gold, and the Australian dollar all tumbled.
• The Nasdaq dropped 20 percent from its previous high.
• The Dow fell 2,231 points on Friday. This marks the fourth time in history it lost over 2,000 points in a single day.
• European and Asian markets also posted steep losses.

Trump Praises Tariff Strategy

Despite the backlash from economists and traders, Trump defended his actions on Truth Social.

“Oil prices are down, interest rates are down... there is NO INFLATION... the long time abused USA is bringing in Billions,” he wrote.

In a follow-up post, he added: “Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN... Be Strong, Courageous, and Patient, and GREATNESS will be the result!”

Recession Fears Intensify

The volatility comes amid deepening concerns about a global recession.

JPMorgan’s Chief Economist Bruce Kasman increased the firm’s recession probability forecast to 60 percent for 2025—up from 40 percent. He noted that a similar surge in odds occurred in 1968, just before the U.S. entered a recession.