A single, false post on X (formerly Twitter) regarding a supposed pause on tariffs triggered a multi-trillion-dollar market frenzy on Monday, highlighting the platform’s power and potential for misinformation.
How a Rumor Turned Into Reality (Almost)
The saga began with a Fox News interview where National Economic Council member Kevin Hassett gave a vague response about potential tariff adjustments. This ambiguity was quickly twisted on X.
The X account “Hammer Capital,” boasting a blue verification badge (a paid feature boosting visibility), falsely claimed President Trump was considering a 90-day tariff pause for all countries except China. This unverified report rapidly spread like wildfire.
The Echo Chamber Effect
Dozens of other verified accounts amplified the false headline. Even established news outlets like Reuters and CNBC initially reported the unsubstantiated claim. Cheers erupted on the New York Stock Exchange floor as the market surged on this false hope of tariff relief.
The X account “Walter Bloomberg,” with a massive following, further fueled the flames, leading to on-air discussions about the nonexistent tariff reprieve. Reuters, citing CNBC, then published its own inaccurate report.
Damage Control and Market Aftermath
The White House swiftly denied the report. The “Walter Bloomberg” account deleted its post, and Reuters and CNBC retracted their stories. However, the damage was done. Between 10:08 a.m. and 10:18 a.m., the market experienced a staggering $2.4 trillion swing.
Reuters blamed a headline published on CNBC, while CNBC admitted to airing unconfirmed information in a banner, which they quickly corrected. X and Elon Musk have not commented on the situation.
This incident underscores the fragility of the market, heavily influenced by fears surrounding Trump’s tariffs and potential economic instability.
The Disinformation Dilemma
The relatively unknown “Hammer Capital” account, when contacted, claimed to be simply sharing information from “trading desks” but offered no further details.
Kate Starbird, a disinformation scholar at the University of Washington, warns of the dangers of social media platforms like X, where viral content is prioritized over verified truth.
“Our social media systems…are designed in such a way that rumors spread extremely quickly, while corrections lag far behind,” Starbird stated. “Changes to account verification on X…make it even more difficult now for social media users…to figure out which accounts and what information we should trust.”
- Keywords: Tariff, Trump, X, Stock Market, Disinformation