The S&P 500 experienced a dramatic spike followed by a sharp retracement due to a false report claiming that President Trump was considering a 90-day pause on tariffs for all countries except China. The rumor, which originated from a misinterpretation of comments made by National Economic Council Director Kevin Hassett during a Fox News interview, triggered a rapid market reaction. Hassett’s vague statement— “the president is going to decide what the president is going to decide”—was misconstrued and amplified across social media and news outlets like CNBC and Reuters, sparking a brief surge of optimism among investors.
The S&P 500, which had been down significantly earlier in the day amid ongoing tariff-related uncertainty, rallied sharply. According to real-time financial data, the index jumped from a low of around 487.789 to an intraday high near 524.79, reflecting an approximate 8% swing in just 30 minutes. This surge briefly added trillions of dollars in market value as investors reacted to the prospect of a temporary relief from Trump’s aggressive trade policies. However, the White House quickly debunked the report as “fake news,” and stocks plummeted back down. By the close of trading on April 8, 2025, the S&P 500 settled at 496.48, down from its previous day’s close of 504.38—a modest decline of about 1.6%—erasing most of the earlier gains.
This wild swing underscores the market’s extreme sensitivity to trade policy developments, particularly Trump’s tariffs, which had already caused significant volatility in prior days. The episode also highlights how quickly misinformation can move markets in an environment desperate for positive news, only for reality to reassert itself once the truth emerged. The real-time data shows the S&P 500’s intraday volatility on April 8, with prices dropping to 487.836 near the day’s end before closing at 496.48, reflecting the market’s rapid reassessment after the false hope dissipated.
Register for Tekedia Mini-MBA edition 17 (June 9 – Sept 6, 2025) today for early bird discounts. Do annual for access to Blucera.com.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register to become a better CEO or Director with Tekedia CEO & Director Program.
The rapid 8% swing in the S&P 500 within 30 minutes reveals just how jittery markets are about trade policy under President Trump’s administration. Tariffs have been a central driver of uncertainty, with investors hanging on every rumor or signal about potential escalation or relief. This event suggests that even unverified news can trigger outsized reactions, amplifying volatility in an already tense environment. Going forward, markets may remain on edge, prone to overreactions as long as trade policy ambiguity persists.
The episode underscores the risks of misinformation in a fast-moving digital age. The initial rally was fueled by a misread of Kevin Hassett’s vague comments, amplified by media and social platforms, only to collapse when the White House stepped in. This could deepen skepticism among investors toward news sources, prompting more reliance on primary statements from officials—or, conversely, more knee-jerk trading based on unverified rumors. Either way, it complicates the ability to separate signal from noise, potentially leading to more erratic market behavior.
For day traders and algorithmic systems, the event was a goldmine—until it wasn’t. The sharp spike and drop likely rewarded those quick enough to buy in and cash out, while punishing slower retail investors or those caught in the retracement. This highlights the double-edged nature of volatility: it creates profit potential but also exposes participants to sudden reversals. With markets this reactive, risk management becomes critical, especially for leveraged positions.
Pressure on Policymakers for Clarity
The market’s wild response may push the Trump administration to clarify its tariff stance sooner rather than later. The White House’s swift denial of the 90-day pause rumor shows awareness of the economic stakes, but the initial ambiguity from Hassett’s comments suggests communication discipline remains uneven. Investors and businesses, already strained by tariff-related cost increases and supply chain disruptions, may demand more concrete guidance to stabilize expectations—though Trump’s unpredictable style could keep uncertainty high.
Beyond the S&P 500, the event reflects deeper economic fault lines. A genuine 90-day tariff pause could have eased pressure on inflation (already elevated from trade costs) and bolstered sectors like manufacturing and retail, which have been hit hard by import duties. The false hope and subsequent letdown may reinforce bearish sentiment, especially if tariff escalation continues. Consumer confidence and corporate earnings could take a hit if markets interpret this as a sign of prolonged trade friction, potentially slowing GDP growth projections for 2025.
Repeated incidents like this could shift how investors approach the market. If volatility becomes the norm, we might see a flight to safer assets—think bonds or gold—or a heavier reliance on hedging strategies like options. Conversely, some may double down on speculative plays, betting on the next rumor-driven spike. Either way, the episode reinforces that fundamentals (like earnings or economic data) are taking a backseat to headline risk in the current climate. This fleeting market rollercoaster is a microcosm of 2025’s economic landscape: fragile, rumor-driven, and teetering on the edge of Trump’s trade agenda.