On April 7, 2025 something wild happened on Wall Street. The stock market went on a rollercoaster ride swinging a massive $7 trillion in value—all because of a piece of “fake news” about President Donald Trump and his tariff plans. It was a chaotic day that left investors, traders and regular people scratching their heads.
The Trigger: A Fake Headline
It all started at around 10:15 AM Eastern Time (ET) on April 7. A rumor spread like wildfire across social media especially on X and even made its way to big news outlets like CNBC and Reuters. The rumor said that Trump was planning to pause his tariff policies for 90 days. For those who don’t know tariffs are taxes the government puts on goods coming into the country and Trump has been a big fan of using them to push companies to make products in the USA.
This news sounded like a big deal because tariffs can shake up the economy. They can make things more expensive for consumers but they can also protect American businesses. Investors were worried about how Trump’s tariff plans would play out so when they heard about a possible 90 day break they got excited. Why? Because a pause could mean less uncertainty and more time for businesses to adjust.
The Market Goes Crazy
As soon as the rumor hit the stock market reacted fast. The S&P 500 which tracks the biggest 500 companies in the U.S. shot up by over 400 points in just a few minutes. That’s a huge jump To put it in perspective this quick rise added about $2.5 trillion to the value of U.S. stocks. Investors were betting that a tariff pause would be good for companies especially those that rely on global trade.
For about 30 minutes it was pure chaos. People were buying stocks left and right thinking the economy might get a breather. The excitement spread beyond Wall Street—regular folks on X were talking about it too with some calling it a game changer for the markets.
The White House Steps In
But then the bubble burst. The White House came out and said “Hold on that’s fake news.” They denied the rumor completely saying Trump had no plans to pause tariffs for 90 days. It turned out the story started from a misleading report that twisted a quote from Kevin Hassett, a National Economic Council advisor. Hassett had been asked on Fox News if Trump might consider a tariff break but he never confirmed it. Someone took that and ran with it creating a fake headline that fooled everyone.
Once the truth came out the market crashed back down. The S&P 500 dropped 300 points almost as fast as it had gone up. In total over those 30 minutes of ups and downs the market swung by about $7 trillion in value. Thats a mind blowing number—more money than the entire economy of most countries.
How Did This Happen?
You might be wondering:- how could a fake story cause such a mess? The answer lies in how fast information moves today. Social media platforms like X let news—real or fake—spread instantly. Traders and investors often react to headlines without waiting to check if they are true especially when its about something as big as tariffs. Big news outlets like CNBC and Reuters picked up the story without double checking which made it seem legit.
There’s also something called “market sentiment.” That’s just a fancy way of saying how people feel about the economy. Lately investors have been nervous about Trump’s tariff plans. Some think tariffs could hurt global trade and raise prices while others believe they will boost American jobs. So when a rumor hinted at a delay it tapped into those feelings and sent the market into overdrive.
The Aftermath: Trump Drops a Real Bomb
Just when everyone thought the drama was over Trump added fuel to the fire. Later that day he threatened to slap an extra 50% tariff on goods from China. This was not fake news—it came straight from him. The market already rattled from the earlier chaos didn’t know what to think. Some stocks went down again while others held steady. It was a reminder that tariffs are still a hot topic and Trump is not backing down.
What We Learned
This wild day taught us a few things. First the stock market is super sensitive to news—especially when its about big policies like tariffs. Second fake news can do real damage. In just 30 minutes $7 trillion swung around because people believed something that was not true. Third speed matters. Traders move fast and by the time the truth comes out the damage (or the gains) might already be done.
For regular people its a wake up call about how much power rumors have in todays world. For investors its a lesson to double check before jumping in. Posts on X from that day showed how confused and frustrated people were. One user called it “the biggest market manipulation scam ever” while another blamed the media for not fact checking.
Why It Matters
You might think this is just a Wall Street problem but it affects everyone. When the stock market swings like this it can change the value of retirement savings, jobs and even the price of everyday stuff like clothes or electronics. Tariffs are a big part of that because they touch everything from what companies pay to what you spend at the store.
This event also shows how tricky it is to trust what you read online. With platforms like X anyone can post anything and its hard to tell whats real. Even big news outlets can mess up in the rush to be first. In a world where information moves at lightning speed one fake headline can shake up the whole economy.
As of April 8, 2025 the dust is still settling. The market is jittery and people are watching Trump’s next move on tariffs. Will he push forward with that 50% China tariff? Will more fake news pop up to confuse things? No one knows for sure but one things clear we are in for more surprises.
April 7 was a wild ride for Wall Street—a $7 trillion swing sparked by a lie. Its a story of how fast things can change how much trust matters and how one rumor can turn the financial world upside down.