Stocks Volatile as Bitcoin Stabilizes Around $78,000 Amid Tariff Rumors

US equities experienced volatility on Monday, with the S&P 500 initially rising by 8% before dropping 3.5%. This fluctuation was triggered by reports of a potential three-month pause on tariffs, which the White House labeled as “fake news.”

Bitcoin traded around $78,000 after falling below $80,000 on Sunday.

The rumor originated from a comment by White House National Economic Council Director Kevin Hassett regarding tariff pauses.
President Trump threatened a new 50% tariff against China if retaliatory actions were not retracted by Tuesday.
Beijing announced a 34% tariff on US imports starting April 10.
As of publication, the S&P 500 was down 0.6%, Nasdaq Composite lost 0.1%, and Dow Jones Industrial Average dropped by 1,000 points.
The VIX index hovered around 45 after exceeding 50 earlier.
Market expectations now include five interest rate cuts from the Federal Reserve this year, with May cut odds increasing from 14% to 33%.
The Fed's Board of Governors meeting is being mischaracterized on social media as an emergency session.