Key Takeaways:

• The White House denied rumors of a 90-day tariff pause by President Trump, calling it “fake news.”
• A misleading social media post led to significant fluctuations in the stock market, which initially surged before falling sharply.
• Market turmoil has been attributed to the impact of Trump's tariffs and misinformation spread via social platforms.

The White House strongly rebutted rumors that President Trump was considering a 90-day pause on tariffs, labeling it "fake news." This statement came after rapid stock market fluctuations earlier on Monday, triggered by a post from the user known as Walter Bloomberg on HuffPost, which suggested that a pause was under consideration. The post went viral, prompting a surge in market indices, with the S&P briefly rising more than 6% before a sharp sell-off followed the White House's denial.

White House press secretary Karoline Leavitt reiterated that the report was based on a misinterpretation of comments made by Kevin Hassett, the National Economic Council director, during an interview on Forbes. Hassett had only indicated that the decision would ultimately lie with the president, stating, "I think the president is going to decide what the president is going to decide."

The events highlight the volatility in the markets tied to Trump's trade policies, which have already sparked fears of a recession, as noted by CNBC. Investors reacted hastily to the rumor, demonstrating a fragile confidence in Trump's economic direction following his recent announcements regarding broad tariffs, which were meant to enhance U.S. manufacturing but have faced backlash for potentially inflating consumer prices.

Market experts have criticized the ease with which misinformation can permeate platforms like X, particularly after policy changes eliminated stringent verification measures once present to distinguish credible news sources. The effects of such fabricated reports can be profound, as seen with past incidents, including one where a fake post about a pharmaceutical company caused its stock to nosedive. This chaotic state in financial markets reflects a growing concern over the implications of misinformation in an already tense economic environment, as President Trump continues to broadcast confidence in his tariff strategies on his own social media channels.

While the White House reassures the public, investors remain wary, reflecting the ongoing volatility in stock markets and questioning the sustainability of Trump's tariff policies for the American economy. For further details, read more on The Hill and Salon.