An erroneously rumored update regarding President Trump's tariff policy led to a turbulent trading day on Monday. Initially, the S&P 500 faced a significant drop at the opening but quickly rebounded by 3% due to conflicting reports about a possible 90-day pause in the tariff rollout by the President.

As the White House denied these reports, the stock market gains were reversed. Citi analyst Stuart Kaiser characterized the situation as having much noise but little clarity, with tariff negotiation headlines causing minor market fluctuations.

By the end of the day, the markets recovered from their initial lows, with the Nasdaq Composite entering positive territory, while the Dow Jones Industrial Average and the S&P 500 experienced declines, although less severe than the morning losses.

Analysts, such as Chris Watling from Longview Economics, noted the market's inclination to rally in response to favorable news, despite the prevailing fear and downside protection. The erratic intraday movements were highlighted as a reflection of the market's cautious positioning.

The surge in stocks earlier in the day was triggered by quotes attributed to White House economic adviser Kevin Hassett suggesting a potential tariff pause; however, Hassett later clarified that no such statement was made. This led to another wave of market fluctuations before a partial recovery in the afternoon.

The White House discredited the initial reports of a tariff pause as "fake news," reaffirming its commitment to implementing reciprocal tariffs on April 9. President Trump himself confirmed this stance during a meeting at the White House, emphasizing ongoing negotiations for fair deals with other countries involving tariffs where necessary.