A false report on CNBC that the Trump administration was planning a 90-day tariff pause triggered sharp swings across US equity markets Monday morning. Within minutes, the SPDR S&P 500 ETF Trust (SPY) shed nearly $10 and wiped out approximately $2 trillion in value from the broader index.
The news reportedly originated on Twitter/X but was added to the headline feed on CNBC without verification. It was then flashed by Reuters, amplifying the narrative.
Bitcoin soared from $77,500 to $80,800 within minutes as news broke of a potential tariff pause. However, as the rumor was debunked, it corrected back to around $78,000.
Initial gains in the SPY saw the fund spike above $520 shortly after the market opened before plunging below $495 as major indices retraced.
The decline followed a brief rally sparked by an unverified social media rumor that President Donald Trump was considering a temporary halt on tariffs. Multiple news accounts rapidly circulated the claim, prompting a surge in algorithmic activity and speculative positioning.
The White House responded to the volatility by labeling the headlines as “fake news,” confirming to CNBC that no such policy consideration had been made.
Nasdaq futures also posted a double-digit percentage swing during the episode, which analysts described as a potential flash event driven by headline trading. The sharp reaction reflects the markets’ current hypersensitivity to policy-related narratives.
With less than an hour of trading elapsed, the S&P 500’s abrupt $2 trillion move may only be the start of this week’s volatility.
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