The stock market experienced significant volatility on Monday as false reports about a potential tariff reprieve briefly sent stocks higher before the White House dismissed the idea. The S&P 500 swung from a loss of as much as 4.7 percent to a gain of as much as 3.4 percent in morning trading. This marked the biggest intraday swing for the S&P 500 since March 2020 during the COVID-19 pandemic.
The S&P 500 ended the day with a slight drop of 0.2 percent, leaving it 17.6 percent below its February peak.
False report disrupts market trends
The index is nearing a bear market, which indicates extreme market pessimism.
Investors remain concerned about the impact of steep tariffs imposed by the United States on large segments of imports, and the retaliatory actions from China and other countries. Monday’s brief rally, spurred by a false report that President Trump was considering delaying the new tariffs, highlighted how desperate investors are for any sign that the White House is addressing their concerns. “This one is likely to last a while given the intransigence of the Trump administration on the issue of tariffs,” said an independent Wall Street economist.
“The stock market clearly believes this is a disastrous policy.”
The overarching concern remains unchanged: investors worry that the tariffs will hinder global growth and contribute to inflation.
