The S&P 500 surged 8.5% in 34 minutes, driven by rumors of a tariff delay.
But the White House denied reports of a 90-day pause.
While investors hoped Trump would shift policy, his focus was on imposing new 50% tariffs on China.
Eager to escape a three-day stock market rout, investors sparked a short-lived rally on Monday, apparently based on what turned out to be fake news.
The S&P 500 rose 8.5% in 34 minutes in the morning, briefly adding $3.6 trillion to its market value.
Earlier, the S&P 500 fell 4.7% at the open, officially entering bear market territory. At its intraday high, the S&P 500 rose 3.4%.
Monday’s stock market plunge showed that investors were desperate for the Trump administration to change its policy direction.
And mixed messages from the White House may not help.
Asked in the Oval Office on Monday whether the administration was using tariffs as a negotiating tactic or if they would be permanent, Trump said, “It could be both.”
“You can have permanent tariffs, or you can negotiate,” he said.
Trump also said he was considering imposing an additional 50% tariff on China in response to retaliatory tariffs announced by China on Friday.
Despite the volatility, stocks closed mostly flat for the day.
Here’s where the indices were at the close at 4 p.m. Monday:
S&P 500: 5,062.25, down 0.23%.
Dow Jones Industrial Average: 37,965.60, down 0.91% (349 points).
Nasdaq Composite: 15,603.30, up 0.10%.
Here’s how trading was today.
The sudden early rally appeared to be sparked by rumors of a 90-day delay in tariffs to allow for negotiations.
Investors and businesses have been desperate to escape the effects of Trump’s trade war. Market experts say Trump’s tariffs, if implemented, could usher in a new global trade order full of uncertainty and protectionism.
Rumors of a 90-day tariff delay began circulating on Wall Street Monday morning, before stocks rose sharply.
The source of the rumors appears to be a popular financial account on X, which quickly shares finance-related headlines.
The @DeItaone account, named “Walter Bloomberg,” shared a now-deleted post at 10:13 a.m. ET that read, “Hassett: Trump is considering a 90-day tariff pause on all countries except China.”
The post referenced an interview with Kevin Hassett, director of the National Economic Council, on Fox News earlier in the day.
Hassett was asked if the president would consider suspending tariffs for 90 days to give countries more time to negotiate, as billionaire investor Bill Ackman and former Goldman Sachs CEO Lloyd Blankfein have advocated.
Hassett responded, “I think the president is going to make the decision that the president is going to make.”
The White House later told CNBC that the 90-day tariff pause was “fake news.” Stocks quickly gave up their sharp gains after reports of an extension were refuted.
Investors still had some hope that a trade deal would heat up after U.S. Treasury Secretary Scott Bessent said in an article in X that Trump had directed him to open negotiations with Japan.
Related topics:
