The stock market experienced significant volatility on Monday due to a false post on social media platform X, formerly known as Twitter. The incident began when Kevin Hassett of the National Economic Council gave an ambiguous response during a Fox News interview about whether President Trump would consider a 90-day pause on recently imposed tariffs. This vague statement was misinterpreted and shared on X by the account “Hammer Capital,” suggesting that Trump was contemplating a 90-day pause on tariffs for all countries except China.
Despite having just over 1,100 followers, the account’s blue verification badge helped amplify its reach. Other verified accounts on X reshared the erroneous headline, and prominent news organizations, including Reuters and CNBC, reported the unsubstantiated claim by 10:12 a.m. Cheers erupted on the New York Stock Exchange trading floor as the market rallied under the false impression of an impending tariff pause.
Market impact of false information
The White House quickly denied the report, and both Reuters and CNBC retracted their erroneous headlines. However, the stock market had already experienced severe volatility, with approximately $2.4 trillion swinging between 10:08 a.m. and 10:18 a.m. ET, according to Dow Jones Market Data.
Reuters blamed an inaccurate headline on CNBC for its mistake, while CNBC acknowledged airing unconfirmed information in a banner but declined to comment on the information’s source. The episode highlights how sensitive Wall Street investors are to news about Trump’s tariffs and the potential dangers of misinformation on social media. Kate Starbird, a scholar of disinformation at the University of Washington, emphasized the need for more robust guardrails and accountability on social media platforms to prevent the rapid spread of false information.
Neither X nor Elon Musk responded to requests for comment on the incident. The market mayhem serves as a reminder of the importance of accurate information and the impact of social media on financial markets.
