Just a hint of hesitation from the White House was enough to electrify Wall Street. In a matter of seconds, a rumor suggesting a 90-day pause on the customs duties imposed by Donald Trump propelled the S&P 500 up by over 6%, only to see the index plummet almost immediately. The markets, on high alert, demonstrated an unprecedented hypersensitivity, amplified by the lack of immediate clarification from the U.S. executive branch.
Trump pauses tariffs for 90 days? A spark is all it takes
A mere suggestion from the White House was enough to ignite a spark on Wall Street. In a matter of seconds, a rumor implying a 90-day pause on the customs duties imposed by Donald Trump propelled the S&P 500 up by more than 6%, only to witness the index rapidly fall again. The markets, in a state of high tension, revealed an unprecedented hypersensitivity, amplified by the absence of immediate clarification from the U.S. administration.
The source of this surge was a statement by Kevin Hassett, the president’s economic advisor, suggesting that Trump might reconsider his position if he so desired. Without announcing any concrete decision, Hassett emphasized that the economic impacts of the tariffs would be limited, while leaving room for strategic ambiguity. Several reporters, including CNBC, seized on the excerpt, triggering a rapid chain reaction: in a matter of seconds, the SPX went from 4,837 to 5,245 points, only to fall back as soon as the White House statement was released.
Presidential denial and crisis of confidence
The White House wasted no time in putting an end to the hopes: a formal denial quashed the speculations, adding to the climate of economic turmoil. This official about-face only added to the confusion. The extreme volatility of the markets reflects a total loss of reference points: some investors seem willing to seize on any rumor in order to push back the specter of a severe recession.
This erratic movement had immediate repercussions on risk assets. Bitcoin soared from $75,000 to $81,200 in just a few minutes, before falling back to around $79,000 at the time of writing this article. ETH, XRP, SOL, and the rest of the crypto market briefly surged by around 10%. But the euphoria did not last in the face of reality: over a billion dollars’ worth of positions were liquidated in the crypto markets.
A market on the brink of panic
The sequence testifies to a market in a state of acute stress, where an ambiguous phrase from a presidential advisor is enough to trigger a mini-crash followed by a downturn. This sudden instability, in a context of imminent trade tensions, recalls the worst days of previous systemic crises. But also memecoins, not so far removed from the functioning of the S&P 500…
In the background, the specter of a “Black Monday” looms over the crypto ecosystem, with a level of nervousness rarely seen in derivatives. Massive liquidations, algorithmic frenzy, and a lack of fundamental benchmarks illustrate a reality: the markets are desperately searching for direction. The slightest false hope becomes a driver of irrational momentum, immediately swept away by the harshness of reality.
With the possibility of new tariffs looming, investors are now navigating a toxic environment where every statement can break down the barriers of rationality.
