Let’s talk about the day the stock market went on a rollercoaster because of a single headline. On a seemingly ordinary morning, US stocks swung by a jaw-dropping $7 trillion in just 30 minutes. Why? A rumor about delaying Trump Tariff on China. Then, poof, it was called “fake news.” But hidden in this chaos is a lesson about how fragile, and oddly hopeful, today’s market really is.
What Happened?
At 02:15 PM UTC, April 7th, reports claimed US President Trump was considering a 90-day pause on tariffs. The S&P 500 shot up +400 points instantly. Investors breathed a sigh of relief… until the White House shut it down, calling the story false. The index then nosedived, erasing -300 points of that gain.
Source | Tradingview
Minutes later, Trump dropped another bombshell: a 50% tariff on Chinese imports if China didn’t scrap its own tariffs by April 8th. Add existing tariffs, and we’re looking at a potential 104% tax on Chinese goods.
Source | TruthSocial @realDonaldTrump
Logically, this should’ve been bad news. Higher tariffs? No deal in sight? Yet, the S&P 500 closed 200+ points above its low for the day. Wait, why?
Bitcoin Reacted Too
It wasn’t just Wall Street that freaked out. Bitcoin, usually considered a “risk-on” asset, mirrored the S&P’s vertical move. From below 77K, BTC skyrocketed past 80K, peaking near 81K before cooling off. The crypto crowd saw the headline and likely thought: “If traditional markets are rallying on this, we’re in too.”
Source | Tradingview
So in just minutes, both stocks and Bitcoin delivered textbook emotional surges. The charts looked identical: a flash crash, a vertical pump, a reality check, and then a rebound that stayed elevated. It wasn’t macro nor earnings. It was pure vibes.
The Real Story: Investors Are Desperate to Buy
The market’s wild reaction tells us one thing: investors are itching to jump back in. Despite the trade war getting worse, money rushed into stocks the second there was a whiff of “good news” (even fake news). Why? Because markets have been stuck in a doom loop lately.
First, let’s rewind. Stocks have been bleeding money all year. Small-cap stocks alone saw -$58 billion in outflows, double the previous record. Investors have been fleeing to cash, terrified of Trump’s tariff threats. But here’s the twist: everyone’s secretly waiting for a reason to buy.
Think about the last two years. Every time stocks dipped, investors piled back in, convinced it was a “bargain.” That “buy the dip” mentality hasn’t died. It’s just waiting for a signal. The fake tariff headline was that signal. It proved that sentiment, not fundamentals, is driving this market.
Why Sentiment Rules Everything
Three months ago, the stock market was all about FOMO (fear of missing out). The top 10 stocks made up 36% of the S&P 500, thanks to the AI boom. Investors chased gains, ignoring risks. Now, the risks (tariffs, trade wars) are front and center, but old habits die hard.
Today showed that hope is still a powerful drug. Even with tariffs rising, investors cling to the idea that a deal could happen. They don’t want to miss the bounce if Trump suddenly announces a truce. It’s like a bad relationship. Everyone knows it’s toxic, but they keep coming back for the occasional good day.
The Big Takeaway
Markets aren’t reacting to reality right now, they’re reacting to emotions. The fake news frenzy revealed two truths:
- Investors are exhausted by the constant drama but still have cash ready to deploy.
- Sentiment can flip on a dime. A single headline (real or fake) can trigger massive swings.
What’s next? If April 8th passes without a US-China deal, expect another meltdown. But for now, the market’s holding onto hope like a life raft. The lesson here isn’t about tariffs. It’s about understanding that in 2024, psychology is the market’s puppet master. Investors aren’t trading charts or earnings; they’re trading vibes. And those vibes? They’re as shaky as a Jenga tower in an earthquake.
So, buckle up. This ride isn’t over yet.
And just a final note: this article is not financial advice. Please, do your own research (DYOR), and if you’re looking to start, you can dig deeper at blog.millionero.com. Once you’re ready, come trade spot and perpetual futures on Millionero, where the market meets momentum.