Fake Tariff Report Sparks $7 Trillion Market Swing Before White House Denial:

Global financial markets are already on edge due to the U.S. administration's new tariffs on major economies. In this fragile environment, even unverified social media content has the power to spark significant market movement.

One such incident occurred when Hammer Capital, an account on Elon Musk’s X platform with only 1,100 followers and a blue verification badge, posted a misleading claim. The post falsely stated that President Donald Trump was considering a 90-day pause on tariffs for most countries.

Widespread Reaction and Media Confusion

The false report quickly gained traction. Within minutes, verified accounts on X began sharing the post, and reputable outlets such as Reuters and CNBC published stories based on the incorrect information.

According to NPR, the misinformation originated from a misrepresentation of a quote by Kevin Hassett, a member of the National Economic Council, during an interview on Fox News. Hassett’s ambiguous response—“I think the president is going to decide what the president is going to decide”—was inaccurately interpreted as confirmation of a temporary tariff relief.

$7 Trillion Market Gyration in 30 Minutes

The effect of the fake news was immediate and substantial. CNN reported that traders on the New York Stock Exchange initially responded with optimism, triggering sharp market gains.

The Kobeissi Letter noted that within a span of just 30 minutes between the initial post and the White House’s official denial, U.S. stocks fluctuated by approximately $7 trillion.

Official Denial and Market Correction

Soon after, the White House released a formal statement denying the report. This brought markets back to reality, resulting in a reversal of most gains. Key indices reacted as follows:

Dow Jones Industrial Average: Dropped 349.26 points (0.91%) to 37,965.60

S&P 500: Fell 11.83 points (0.23%) to 5,062.25

Nasdaq Composite: Rose 15.48 points (0.10%) to 15,603.26

During the trading session, the S&P 500 ranged from a low of 4,835.04 to a high of 5,246.57, reflecting the volatility caused by the false claim.