Wall St resumes slide after White House denies report of tariff pause

NEW YORK: US stock indexes resumed their slide in late morning trade on Monday as investors retreated for the third day after President Donald Trump unleashed a global trade war and a report that he might consider temporary relief turned out to be erroneous.

US stocks have been hammered by the Trump administration’s plans to impose sweeping tariffs on all imports into the United States as well as more levies on some major trading partners.

The S&P 500 fell 20% on an intraday basis from its February record closing high. If the index ends down 20% from its all-time closing highs, it would confirm the index has been in a bear market since February.

The blue-chip Dow is down nearly 17% from its December all-time high.

At one point during the morning, however, stocks suddenly reversed course and rallied after a report that Trump was considering a 90 day pause on tariffs. But White House officials quickly denied the report, sending the market back in the red.

CNBC, which in an on-screen chyron had cited White House economic adviser Kevin Hassett for the pause, subsequently reported the White House denials. It did not immediately respond to a Reuters request for comment.

“There is reporting that the White House is not confirming the idea of a pause. It’s just rumors that are affecting stock prices right now, and that’s how bad the situation is,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.

At 11:18 a.m. the Dow Jones Industrial Average fell 854.89 points, or 2.23%, to 37,459.97, the S&P 500 lost 85.02 points, or 1.68%, to 4,989.06 and the Nasdaq Composite lost 218.06 points, or 1.40%, to 15,369.73.

All three indexes were at more than one-year lows.

Trump announced hefty tariffs against US trading partners last week, sparking retaliation from China and fueling concerns that the trade war will impede economic growth and stoke inflationary pressures.

In the two sessions after the tariff decision, the S&P 500 has tumbled 10.5%, erasing nearly $5 trillion in market value, marking its most significant two-day loss since March 2020.