The New York Stock Exchange experienced significant turmoil on Monday, following a weekend of panic over President Donald Trump’s tariffs. Initially, the Dow Jones dropped over 1,500 points, the NASDAQ fell more than 4.5%, and the S&P 500 plummeted by 4%. This marked the S&P’s largest three-day crash since October 1987, potentially entering a bear market for the first time since the Covid-19 pandemic if losses persist.
Amidst this chaos, rumors circulated that Trump might consider a 90-day pause on tariffs, excluding China. The source of this rumor remains unclear, with conflicting reports from various media outlets. Trump’s economic adviser, Kevin Hassett, neither confirmed nor denied the possibility during a Fox & Friends appearance. CNBC later reported that no plans for a tariff pause were currently known within the West Wing.
The White House eventually dismissed the rumor as “Fake News,” causing markets to resume their downward trend after a brief spike. Asian stock exchanges were heavily impacted over the weekend, with the Hong Kong Hang Seng Index dropping 13.22% and the MSCI Asia Pacific Index falling 8.5%, the largest decline since the 2008 financial crisis. European markets also suffered losses ranging from 4-5%.
Trump, returning from a golf trip in Florida, dismissed concerns about market declines, stating that sometimes sacrifices are necessary for long-term fixes. Despite defending his economic policies, critics argue that his actions could lead to a recession, disproportionately affecting middle and lower-income Americans.
— new from Rolling Stone