Due to rumors of a "90-day tariff delay," the U.S. stock market experienced extreme volatility on Monday, with a sharp surge followed by a rapid plunge within just 15 minutes, creating a pulse-like swing. The Dow Jones Industrial Average fluctuated by a record 2,595 points between its intraday low and high, while the S&P 500 at one point erased more than 20% of its four-day cumulative losses. Although the Nasdaq managed to eke out a gain by the close, the S&P 500 and the Dow extended their losing streak to four consecutive days.

The initial rally in U.S. stocks was driven by reports that the U.S. might suspend some tariffs for 90 days. However, upon verification, White House National Economic Council Director Kevin Hassett said in an interview on Monday that "the president will make whatever decision he wants to make," without explicitly stating that Trump was considering suspending tariffs on certain countries. White House Press Secretary Kayleigh McEnany later clarified that this was "fake news." This episode highlighted the uncertainty surrounding Trump's global trade policy, which presents a highly "binary" outcome: if tariffs remain in place, the economy could contract rapidly, potentially pushing the S&P 500 into bear market territory; conversely, if tariffs are lifted, economic growth could resume, and stocks might rebound to new highs.

Adding to the confusion is the mixed messaging within the U.S. administration. Some cabinet members claimed negotiations were underway with as many as 50 to 70 countries, while White House trade adviser Peter Navarro insisted there was "no room for negotiation." Trump's own rhetoric has also been unpredictable, making portfolio management particularly challenging. The market could continue to plummet due to panic or miss out on a rebound if policies suddenly shift. As a result, investors may need to adjust their strategies to navigate the rapidly changing landscape.

Trump’s tariff policies have already triggered global retaliation. Following China’s announcement of countermeasures, the EU also plans to impose two rounds of retaliatory tariffs on the U.S., expected to take effect this month and on the 15th of next month, respectively. Market panic has reached extreme levels, with the VIX volatility index briefly surging to 50—a level typically seen during bear markets. Recession fears and panic have driven crude oil prices to a four-year low, while copper prices briefly entered bear market territory, plunging more than 8%. At the same time, the S&P 500 and the euro/dollar exchange rate recorded their largest single-day combined declines since 2000. Global stock indices have all suffered steep losses, and surprisingly, gold—traditionally seen as a safe-haven asset—failed to sustain its upward trend and instead experienced a significant correction.