As markets responded to rumors that President Donald Trump could halt his harsh tariff plans, U.S. stocks experienced a wild ride on Monday, leaving investors disoriented. As the rumor faded, traders’ hopes of any respite from the Trump tariffs were shattered, plunging markets back into turbulent waters.
The day kicked off with global markets already reeling. Fears over how Trump’s tariffs could rattle the world economy and slow U.S. growth sent stocks tumbling at the opening bell. The S&P 500 nosedived into bear market territory—a brutal 20% drop from its recent high—marking a grim start. Then, about an hour in, a rumor sparked a surge: Could the administration delay its tariff rollout for months? The Dow shot up nearly 900 points on the buzz, offering a glimmer of hope.
But that optimism didn’t last. The rumor proved to be nothing more than hot air, and the markets reversed hard. By mid-session, the Dow was down 500 points (a 1.3% dip), the S&P 500 slipped lower, and the Nasdaq Composite hovered just 0.1% in the red. It was a stark reminder of how jittery investors are about U.S. stock volatility tied to trade policy.
A Global Ripple Effect
This wasn’t just a U.S. story. Asia saw a historic sell-off overnight, and Europe took a beating too, all fueled by uncertainty over Trump’s trade moves. The S&P 500, which hit an all-time high on February 19—less than seven weeks ago—now teeters on the edge of a bear market. If it closes there, it’d be the second-fastest peak-to-bear plunge ever, trailing only the 2020 COVID-19 crash. That’s how quickly the Trump tariff rumors have flipped the script.
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What’s Driving the Madness?
The markets are hypersensitive right now, and it’s easy to see why. Trump’s sweeping tariffs threaten higher costs for businesses and consumers, potentially choking economic momentum. When traders heard the tariff plan might stall, they jumped at the chance for relief—only to be let down. Without solid news, every whisper becomes a market mover, amplifying U.S. stock volatility.
Looking Ahead
For now, investors are left guessing. Will Trump stick to his tariff guns, or could negotiations—like the EU’s recent zero-tariff offer—shift the tide? One thing’s clear: until there’s real clarity, expect more wild swings. The markets hate uncertainty, and Trump tariffs are serving up plenty of it.
