Stock market takes a dive following Trump's web debate claim of tariffs' "fake news" status
In a series of events that sent shockwaves through the financial world, the stock market experienced a rollercoaster ride last week, with a sudden surge and plunge that cost investors approximately 3.5% in a matter of seconds. The cause of this market turbulence can be traced back to a tweet about a potential 90-day tariff pause for all countries except China.
However, further investigation reveals that the initial news about the tariff pause originated from an online post by an account named "Walter Bloomberg," which later turned out to be questionable in its reliability. The White House's social media account, Rapid Response 47, swiftly denied the tariff pause news, leading to the market's plummet.
The market's sudden surge, which saw an 8.5% increase in just 34 minutes according to Business Insider, was based on a headline attributed to Kevin Hassett, director of the National Economic Council. However, Barron's suggests that this may have been a misunderstanding of Hassett's Monday morning interview with Fox News.
The context suggests that while President Trump maintained and expanded tariffs on China, he was not broadly pausing tariffs for other countries. Instead, tariff policies were generally becoming more stringent or extensive. Therefore, the specific claim of a 90-day pause on tariffs for all countries except China does not align with the available documentation of his actions and executive orders in early April.
The "Walter Bloomberg" account typically posts headlines and information from news outlets, but there is confusion about its origin and reliability. A Bloomberg business reporter later disavowed any link between the news outlet and the "Walter Bloomberg" social media account.
Meanwhile, Trump coined a new term, "Panican," to refer to Americans who panic about economic issues. He also posted on his website, Truth Social, urging people to be strong, courageous, and patient, and that greatness will result.
In a separate development, Trump's post on Truth Social suggests the creation of a new political party, "Panican," based on weak and stupid people. This announcement has added to the political uncertainties surrounding the President's administration.
As the dust settles, the financial world is left grappling with the consequences of this market volatility. Some users have compared the S&P's behaviour to a memecoin due to its volatile behaviour, while others have noted that the account being blamed for the mistake is "verified" by paying a monthly subscription fee to Elon Musk's company.
The market's recent turbulence serves as a stark reminder of the power of social media and the importance of verifying information before making investment decisions. As the investigation into the origin and reliability of the tariff pause news continues, the financial world awaits clarity with bated breath.
[1] For more details about the tariff actions announced around that time, please refer to the April 7th report by Reuters.
- In light of the market's recent volatile behavior, the financial world is emphasizing the need for verifying information before making investment decisions.
- The misinformation about a potential 90-day tariff pause originated from an unverified social media account, causing significant market turbulence.
- The tech world is buzzing with discussions about the role of social media in influencing the stock market, especially after this recent incident.
- The President's administration, amidst political uncertainties, is considering the creation of a new political party, named "Panican," based on his term for panicking individuals.
- As the investigation into the reliability of the "Walter Bloomberg" account continues, it raises questions about the credibility of certain tech platforms and their influence on general-news and business sectors.
