A false X post from an anonymous user has been blamed for a dramatic swing on US markets yesterday, which one investment strategist described as the most memorable day of trade in decades.
The spurious rumour saw trillions of dollars of value added to companies’ shares in a matter of minutes – and quickly taken away again, once the truth became clear.
US markets had opened lower yesterday morning, as traders continued to calculate the potential impact of President Donald Trump’s tariffs.
But within the hour they began to rally, with both the Dow Jones and Nasdaq briefly entering positive territory. In the space of just 10 minutes – between 10:05 and 10:15am New York time – shares on US markets spiked by almost 10%. Then, almost as quickly, those gains were reversed.
Behind that shift was a rumour that had spread rapidly among traders, suggesting the Trump administration was planning to pause most of its planned tariffs for 90 days. Such a move was clearly being welcomed by markets – however it turned out to be completely untrue.
“In over 20 years working in markets, I can’t really recall anything quite like it,” said Dan Moroney, investment strategist at RBC Brewin Dolphin.
Rather than White House sources, the rumoured pause seems to have come from an anonymous X user, who uses the handle Walter Bloomberg. That account regularly posts headlines from financial news outlets, including Bloomberg and Reuters, and has more than 800,000 followers.
At 10:13am yesterday it posted that US National Economic Council director Kevin Hassett had said Donald Trump would consider a 90 day pause on tariffs.
And given the account’s large following – particularly among those interested in financial markets – that was quickly picked up by investors.
One CNN reporter who was on the floor of the New York Stock Exchange at the time reported hearing cheers among traders, and shares began to surge. Moments later CNBC picked up on the rumour – with anchors reporting it at 10:15am, and its TV coverage displaying a banner headline shortly after. And that led Reuters to report the rumour, too, citing CNBC.
But a short time later sources from the White House reported no knowledge of such a plan – with an official spokesperson declaring it “fake news” an hour later.
Instead the rumour seems to have been based on a misinterpretation of comments made by Mr Hassett in a Fox News interview that morning.
In that interview he was asked “would [Trump] consider a 90 days pause [in tariffs]?”.
In response, Mr Hassett said “the president’s going to decide what the president’s going to decide.”
That was somehow picked up by some as a sign that a pause in tariffs was on the table – and reported as such online.
Another account – with the handle Hammer Capital – sent out a similarly misleading tweet around the same time as Walter Bloomberg’s, however that account has a much smaller following.
Walter Bloomberg’s popularity, his tendency to generally post accurate headlines, and the way his username gives the impression of a connection to a reputable news source, all seem to have contributed to his message going viral. The fact that it is a verified account also gave the post credence, despite the fact that a ‘blue tick’ can be bought for €8.61 a month.
The inaccurate post has since been deleted – but it has served to highlight how easily markets can be manipulated in times of uncertainty and heightened anxiety.
“That’s the kind of skittish market that we’re operating in,” said Mr Moroney. “They were crying out for some relief and some good news.”
