The Phantom Tariff Pause: How an Errant X Post Rocked the Stock Market
In the fast-paced world of financial markets, where fortunes can be made or lost in mere seconds, information is king. But what happens when that information is not only incorrect but also disseminated through the echo chamber of social media? This question came to the forefront on a turbulent Monday morning when an unsourced rumor regarding a potential 90-day pause on U.S. tariffs ignited a flurry of activity on the stock market, only to be swiftly debunked by the White House. The incident exposed the fragility of market sentiment and the outsized influence—and potential for manipulation—that social media platforms like X, formerly Twitter, can wield.
The chaos began with a seemingly innocuous interview. National Economic Council Director Kevin Hassett appeared on Fox News around 8:30 a.m. ET. When questioned about the possibility of a tariff reprieve, Hassett offered a noncommittal response, essentially stating that the decision rested solely with President Trump. This ambiguous statement, however, became the seed for a market-moving rumor. At approximately 10:11 a.m. ET, an X account with the handle “yourfavorito,” operating under the name “Hammer Capital,” posted a claim that Hassett had confirmed a 90-day tariff pause. This post, originating from an account with a modest following of just over 1,000 users, set off a chain reaction that rippled through the financial world.
Almost immediately, the rumor gained traction. Cheers erupted on the floor of the New York Stock Exchange as indices, already recovering from earlier dips, surged upward. At 10:12 a.m. ET, CNN’s Vanessa Yurkevich reported the palpable excitement on the trading floor as investors reacted to the supposed news. Just one minute later, the rumor was amplified by a much larger X account, "Walter Bloomberg" (handle "DeItaone"), which boasts over 800,000 followers. This account, known for disseminating financial news flashes, reposted the claim, adding a siren emoji for dramatic effect. The rumor, now broadcast to a significantly wider audience, fueled further market momentum.
CNBC, a leading financial news network, quickly picked up on the market activity, initially unsure of its cause. Anchors David Faber and Carl Quintanilla, visibly perplexed, searched their screens for any official confirmation from wire services or other reputable sources. Unable to find a definitive source, they nevertheless aired the purported headline at approximately 10:15 a.m. ET, attributing it to Hassett. The on-screen banner read, "HASSETT: TRUMP IS CONSIDERING A 90-DAY PAUSE IN TARIFFS FOR ALL COUNTRIES EXPECT CHINA," presented as confirmed news, despite the lack of verification.
The CNBC broadcast further legitimized the rumor, prompting Reuters, another prominent news agency, to report the supposed comments at 10:19 a.m. ET, citing CNBC as its source. This created a feedback loop, with the unverified information circulating between social media, television, and news wires, amplifying its reach and impact. The market continued its upward trajectory, driven by the now widely disseminated, yet entirely false, information.
The situation quickly unravelled as the White House stepped in to categorically deny the rumor. The market, having rallied on misinformation, experienced a subsequent decline as the truth emerged. CNBC, acknowledging its error, issued an on-air correction and a subsequent statement admitting to broadcasting unconfirmed information. Reuters retracted its initial report and issued an apology for the mistake. Both “Hammer Capital” and "Walter Bloomberg" deleted their original posts. "Walter Bloomberg" claimed to have seen the information on Reuters first, while "Hammer Capital" pointed to both Reuters and CNBC, despite timelines suggesting otherwise. The incident left market participants bewildered and highlighted the precarious nature of relying on unverified information in the digital age. It also underscored the immense power of social media, where a single, erroneous post from a relatively obscure account can trigger a cascade of events with real-world financial consequences. The incident serves as a stark reminder of the importance of verifying information, especially in the volatile world of finance, and the crucial role of responsible reporting in preventing the spread of misinformation.