Rumors of Tariff Pause Impact Stocks While Nvidia and AI Tokens Rise
On April 7, financial markets reacted to unverified rumors of a 90-day tariff pause by the US government, excluding China. Key developments included:
- 10:10 AM ET: Rumors about a tariff pause circulated on social media, leading to initial market optimism.
- 10:15 AM ET: CNBC reported the rumor as news, causing a surge in stock and crypto markets.
- 10:25 AM ET: Conflicting reports emerged; the White House denied any knowledge of such a pause.
- 10:40 AM ET: The S&P 500 index dropped by 9.6%, losing $2.5 trillion in value.
Market Performance
Nvidia Corp (NASDAQ: NVDA) defied the trend, closing up 3.53% with a market cap of $2.38 trillion. In the cryptocurrency sector:
- The global market cap rose 4.9% to $2.52 trillion despite earlier volatility.
- Over 440,000 traders experienced liquidations totaling $1.3 billion, indicating potential bear market conditions.
- AI and big data-related tokens gained 7.3%, reaching a market value of $22.55 billion, with NEAR Protocol and Internet Computer leading their category.