A false report claiming the Trump administration was preparing a 90-day pause on tariffs triggered a wave of volatility across U.S. equity and crypto markets on Monday.

What Happened: The confusion began when an unverified post on X suggesting a temporary tariff halt made its way to CNBC's headline feed without confirmation.

The headline was later picked up by Reuters, further amplifying the misleading report.

The White House quickly denied the claim, telling CNBC that no such policy was under consideration and labeling the headlines as "fake news."

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Why It Matters: The SPDR S&P 500 ETF Trust (NYSE:SPY) saw a sharp swing, rising above $520 at the open before tumbling below $495 shortly after the rumor was debunked.

The index's swing represented an approximate $2 trillion loss in market value, highlighting the fragility of investor sentiment amid ongoing trade policy tensions.

Bitcoin (CRYPTO: BTC), too, responded sharply to the fake headline.

The cryptocurrency surged from $77,500 to $80,800 within minutes as hopes of a tariff pause spread.

But once the rumor was invalidated, BTC corrected back to around $78,000, giving up most of its gains.

Nasdaq futures were also caught in the turmoil, swinging in double-digit percentage ranges.

Analysts attributed the erratic price action to a mix of headline-driven algorithmic trading and heightened market sensitivity to geopolitical and economic policy headlines.

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Image created using artificial intelligence with Midjourney.