How One Tweet Crashed the Stock Market

Market Disruption Following Erroneous Tariff Report

A period of significant turbulence unfolded on Wall Street as a widely-followed news aggregator on X, operating under the name Walter Bloomberg, disseminated inaccurate information. The report falsely indicated that President Trump was contemplating a temporary, 90-day suspension of his contentious tariff policies.

Initial Market Reaction and Volatility

Despite the report’s lack of veracity, major index funds, including the Dow Jones, experienced substantial fluctuations. Prices surged initially, only to swiftly reverse direction within minutes. This level of instability proved particularly noteworthy, exceeding the typical daily price variations observed in the stock market, and consequently, attracted considerable attention.

Walter Bloomberg’s Role and Reliability

The Walter Bloomberg account, while not formally linked to any established news organization or Bloomberg News, had cultivated a reputation as a dependable source for technology and business-related updates. Its operational method involves publicly sharing news headlines directly from the Bloomberg Terminal, rather than generating original content.

The Bloomberg Terminal is a premium, subscription-based service utilized by financial professionals to access real-time market data, including breaking news headlines. Often, news from sources like CNBC and Bloomberg appears on the Terminal before being published on public websites, making accounts like Walter Bloomberg valuable for timely information.

Chain of Reporting Errors

On Monday, a sequence of inaccuracies originating from CNBC and Reuters, subsequently amplified by the Walter Bloomberg account on X, demonstrably impacted stock market activity during an already volatile trading session.

The headline shared by Walter Bloomberg – later deleted due to its falsity – stated: “HASSETT: TRUMP IS CONSIDERING A 90-DAY PAUSE IN TARIFFS FOR ALL COUNTRIES EXCEPT CHINA.”

White House Response and Clarification

The White House’s rapid response team swiftly addressed the situation by quote-tweeting the now-removed Walter Bloomberg post, explicitly denying that Kevin Hassett, Trump’s director of the National Economic Council, had made such statements.

To substantiate their denial, the White House-affiliated account shared a video clip from Fox News, identifying the source of the initial, incorrect claim.

Origin of the Misinformation

Following a request from billionaire Bill Ackman for a 90-day pause on the tariff plan, a Fox News anchor questioned Hassett, asking, “Would you do a 90-day pause? Would you consider that?”

Hassett responded, “You know, the president will decide what the president is going to decide… But I would urge everyone, especially Bill, to ease off the rhetoric a little bit.”

Accountability and Statements

When queried on X regarding the source of the information, Walter Bloomberg attributed the headline to Reuters.

Walter Bloomberg did not provide a response to a request for comment from TechCrunch.

Reuters released a statement to TechCrunch, stating: “Reuters, drawing from a headline on CNBC, published a story on April 7 saying White House economic adviser Kevin Hassett had said that President Donald Trump was considering a 90-day tariff pause on all countries except China. The White House denied the report. Reuters has withdrawn the incorrect report and regrets its error.”

CNBC’s Admission

Consequently, Walter Bloomberg directed blame towards Reuters, which in turn pointed to CNBC.

A CNBC spokesperson communicated to TechCrunch: “As we were chasing the news of the market moves in real-time, we aired unconfirmed information in a banner. Our reporters quickly made a correction on air.”

Walter Bloomberg deviated from its usual objective style, posting a simple “wtf,” and then shared a screenshot of the Terminal’s report from CNBC confirming that the White House was unaware of any plans for a 90-day pause.

Impact on Financial Professionals and the Public

It is probable that Wall Street traders encountered this news directly on the Bloomberg Terminal, rather than through the Walter Bloomberg aggregator. However, individuals outside the financial industry rely on accounts like Walter Bloomberg to replicate the rapid news access provided by the Terminal.