One of the craziest turns in the stock market in modern history occurred Monday morning, and it was all based on fake news. 

Before the opening, futures showed another bad day for stocks on the horizon, with all three major markets bracing for another large drop. That initially happened, but then a claim about what Kevin Hassett, one of President Donald Trump's top economic advisors, said went viral. 

Everyone from CNBC to Reuters blared headlines proclaiming a "90-day pause" on tariffs was being considered in light of countries offering to enter into negotiations. That sent stocks flying, with the Nasdaq and S&P 500 (where most 401s are heavily invested) at or above three percent gains. 

BREAKING—DOW Jones, S&P 500, and NASDAQ are rallying, reversing earlier losses pic.twitter.com/0ly8qIaK0r

— Election Wizard (@ElectionWiz) April 7, 2025

There was just one problem: The report was false. 

The White House's rapid response account gave an unequivocal rebuttal, seemingly ending the idea that any such agreement was under consideration. 

.@PressSec: Reports that @POTUS is considering a 90-day pause on tariffs are FAKE NEWS. pic.twitter.com/UfXO1BhwYW

— Rapid Response 47 (@RapidResponse47) April 7, 2025

Within seconds, stocks dropped back deep into the red. They then climbed a bit before dropping yet again as of this writing. The volatility and uncertainty are absolutely insane to witness in real-time.

Whatever arguments exist on both sides of this tariff battle, what this shows is that White House trade policy still has immense influence over the markets and all the downstream effects. There is a "will he, won't he" game playing out, and no one really knows how to respond. Do you bet this is temporary or not?

If new trade deals lowering tariffs are struck soon, you can expect a quick recovery based on how quickly the market reacted to even the possibility of a pause. If this lingers, we'll probably see further decline in the markets until whatever long-term effects are being promised materialize, if they materialize. 

In other words, I'd recommend a game of golf today or maybe taking a walk. It's going to be a wild one.

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