An errant post on X may have just shaken the stock market, showing how influential — and unreliable — the social media platform can be. Unsourced “headlines” about a potential “90-day pause in tariffs” sent markets into a state of turbulence Monday morning as investors sought any indication of a reprieve from the Trump administration’s new levies. The problem: It wasn’t true. The White House swiftly denied the rumor shortly after it began to circulate online. The false posts may have originated from a real Fox News interview with National Economic Council Director Kevin Hassett at around 8:30 a.m. ET. Hassett was asked whether President Donald Trump would “consider a 90-day pause in tariffs,” and he replied in part: “The president is (going to) decide what the president is (going to) decide.” According to CNN’s analysis, the first X post to claim Hassett said Trump would consider a 90-day pause in tariffs came at 10:11 a.m. ET from an account called “Hammer Capital” with the handle “yourfavorito,” which has barely 1,000 followers. At about 10:12 a.m., CNN’s Vanessa Yurkevich, who was on the floor of the New York Stock Exchange, said that cheers had broken out, as stock indices — which were already recovering from early-morning lows — suddenly surged. “Walter Bloomberg,” an account with a much larger following that uses the handle “DeItaone” copy-and-pasted the original rumor along with a siren emoji at 10:13 a.m. On CNBC, anchors were seemingly baffled, wondering what was causing the turnaround. CNBC anchor David Faber and his network colleagues wondered aloud about the triggering “headline,” searching their computer screens for a wire service alert or any other indication of what could have caused stock market movements. By 10:15 a.m., CNBC anchors were reading the news on air. “I think we can go with this headline, apparently Hassett’s been saying Trump will consider a 90-day pause in tariffs for all countries except for China,” anchor Carl Quintanilla said. “We’re trying to source that exactly in terms of where that’s coming from,” Faber quickly added. CNBC showed the “headline” on screen less than a minute later. “HASSETT: TRUMP IS CONSIDERING A 90-DAY PAUSE IN TARIFFS FOR ALL COUNTRIES EXPECT CHINA,” the CNBC banner read, as if the news was confirmed. By 10:19, Reuters alerted the supposed comments, citing CNBC. Stocks would later decline as the White House firmly denied the supposed headline. CNBC reporters quickly reported the White House denial, and Reuters updated its stories, later issuing an advisory at 12:28 p.m. withdrawing the original alert along with a statement that the newswire service “regrets its error.” The “Walter Bloomberg” account appears to borrow its name from the Bloomberg financial news service to gain credibility. The account, which has more than 800,000 followers, often posts accurate news flashes from Bloomberg, Reuters and other outlets. “Hammer Capital” also posts headlines, as well as stock market memes. Both that account and “Hammer Capital” do not publicize their real identities. Both have blue checkmarks on X, which used to indicate the account holder’s identity had been verified. But when Musk took over the service formerly known as Twitter, he turned the blue checkmark into a paid service, meaning anyone could pay to appear verified and have their posts boosted on others’ timelines. Once the financial damage was done, “Walter Bloomberg” deleted the post, claiming they first saw it on Reuters, and market participants were left wondering what just happened. “Hammer Capital” said on X they first saw the news on Reuters and CNBC, although Reuters’ flash was at 10:19 a.m., sourced to CNBC. A CNBC spokesperson said in a statement: “As we were chasing the news of the market moves in real-time, we aired unconfirmed information in a banner. Our reporters quickly made a correction on air.” “Hammer Capital” denied making up the headline: “To be as abundantly clear as possible, trading desks started sending out this headline at 10:09. I was regurgitating what the market was reacting to, to my 600 followers. It was an incorrect interpretation of a Fox News interview,” they posted on Monday afternoon. Wherever the original source of the incorrect headline came from, it was amplified by trusted sources in financial news, creating a very expensive lesson in the value of accurate and reliable reporting.
How actual ‘fake news’ caused a market whiplash
TruthLens AI Suggested Headline:
"False Social Media Report on Tariff Pause Causes Market Volatility"
CNN
7.8
TruthLens AI Summary
A false post on the social media platform X has caused significant turmoil in the stock market, demonstrating the influence and unreliability of social media in financial reporting. The chaos began when unsourced claims circulated about a potential '90-day pause in tariffs' by the Trump administration. This rumor, which was later proven to be untrue, sparked a surge in stock prices as investors reacted to the possibility of easing trade tensions. The misinformation reportedly stemmed from a real interview with National Economic Council Director Kevin Hassett, where he was asked about the possibility of a tariff pause. His ambiguous response was misconstrued and misreported, leading to a rapid spread of the false headline. The first post to disseminate this misinformation came from a relatively obscure account named 'Hammer Capital', which quickly gained traction and was echoed by more prominent accounts, such as 'Walter Bloomberg', further amplifying the effect on the market.
As the stock indices began to rise dramatically, financial news outlets struggled to find the source of the sudden market movement. CNBC anchors expressed confusion and sought confirmation of the supposed news, ultimately broadcasting the incorrect headline on air, which further fueled market reactions. However, within minutes, the White House denied the claims, prompting a rapid retraction from news outlets, including Reuters, which later issued an advisory regretting the error. The incident highlighted the dangers of rapid information dissemination on social media, especially regarding financial news, where accuracy is crucial. Both 'Hammer Capital' and 'Walter Bloomberg' attempted to distance themselves from the misinformation, claiming they were merely relaying what was being circulated. This episode serves as a cautionary tale about the potential repercussions of unverified news in the financial sector and underscores the need for reliable reporting in an age of social media.
TruthLens AI Analysis
The article highlights how misinformation on social media, particularly on the platform X, can lead to significant fluctuations in the stock market. A false claim regarding a potential pause in tariffs led to a surge in stock prices, demonstrating the power and unreliability of social media in influencing economic behavior. This incident emphasizes the need for caution when interpreting news from unofficial sources.
Implications of Misinformation
The rapid spread of false information can create unnecessary volatility in the stock market. Investors often react impulsively to rumors, which can exacerbate market movements. The article illustrates how a single tweet can trigger a chain reaction, leading to confusion among financial analysts and news anchors. This raises questions about the overall stability of the market and the reliability of information circulating on social media platforms.
Public Perception and Trust
The incident may affect public trust in both the media and financial institutions. As false information can lead to real economic consequences, the potential for skepticism towards legitimate news sources could grow. If the public perceives that news outlets cannot accurately report facts or verify claims, it may lead to a broader distrust in the media landscape.
Economic and Political Consequences
This specific misinformation could have broader implications for economic policy and the political landscape, especially concerning trade and tariffs. The swift denial from the White House highlights the sensitivity of such topics and how easily misinformation can mislead the public and investors alike. The article suggests that ongoing trade discussions and negotiations could be influenced by how rumors are disseminated and perceived in the future.
Target Audience
The article likely resonates with investors, financial analysts, and general audiences interested in the mechanics of market movements. It serves as a cautionary tale for those who may rely on social media for economic news, urging a more discerning approach to information consumption.
Market Impact
The misinformation could lead to a short-term spike in stock prices, particularly in sectors sensitive to tariff changes. Companies that rely on international trade or are heavily impacted by tariffs would be particularly affected by such rumors, making this news significant for their stock performance.
Global Power Dynamics
While the article does not directly address global power dynamics, the underlying theme relates to how misinformation can impact economic relations and international trade policies. This is a crucial aspect of today's geopolitical landscape, where accurate information is vital for maintaining stable relations between nations.
Potential Use of AI in Reporting
The writing style and structure of the article could suggest the influence of AI in its formulation. AI models could have been used to analyze market reactions or even generate preliminary drafts based on trending topics. However, the human element in verifying facts and ensuring accuracy remains paramount.
In conclusion, the article illustrates the dangers of misinformation in the financial sector and the broader implications it carries for public trust and economic stability. Given the nature of the events discussed, the reliability of this news source is called into question due to the propagation of unverified claims.