A multi-trillion dollar swing in the stock market this month is a case study in misinformation that should alarm PR professionals, journalists, influencers and executives.
On April 7, Treasury Secretary Kevin Hassett answered a question on Fox News about the Administration’s recent tariffs by saying, “…the president is going to decide what the president is going to decide.”
The answer was quickly picked up by blue check marked X account “Hammer Capital,” who, at 10:11 a.m. ET, posted the tweet, “HASSETT: TRUMP IS CONSIDERING A 90-DAY PAUSE IN TARIFFS FOR ALL COUNTRIES EXCEPT CHINA…” (A note that the account has since stated “trading desks started sending out this headline at 10:09” a.m. ET).
The rumor was quickly shared and reposted, and, per CNN, cheers broke out on the New York Stock Exchange floor by 10:12 a.m. ET.
One minute later, the X account “Walter Bloomberg,” which is not affiliated with Bloomberg News but has more than 861,000 followers on the app as of this writing, reposted Hammer Capital’s tweet.
At 10:15 a.m. ET, CNBC anchors discussed the update on the network while noting they were “trying to source [the headline] exactly in terms of where that’s coming from.” Reuters then published a story “drawing from a headline on CNBC” about a potential tariff pause that it withdrew by 10:32 a.m. ET.
CNBC also issued a correction, with a spokeswoman saying, “As we were chasing the news of the market moves in real-time, we aired unconfirmed information in a banner. Our reporters quickly made a correction on air.”
In 10 minutes, the stock market fluctuated by $2.4 trillion, according to Dow Jones Market Data — all because a social media account misinterpreted something said on TV.
When PR professionals discuss the dangers of misinformation and disinformation, it’s not always from nefarious actors. Nevertheless, the literal costs of misinformation can be astronomical.
So, what lessons can we take from this trillion-dollar fiasco?
- Misinformation doesn’t have to come from nefarious sources to be damaging. There is a prevailing notion among certain segments of the public that misinformation and disinformation can only originate from malicious actors. Each of the major parties involved in this story believed they were sharing accurate information. Nevertheless, it still led to a $2.4 trillion swing in the stock market in 10 minutes.
- Being quick and wrong will have a worse impact on your reputation than being deliberate and right. The need to check and re-check primary sources is often weighed against the need to be first, and can have extremely dangerous real-world consequences. That goes for journalists, PR professionals and even social media influencers.
- The correction should be as loud as the mistake. CNBC had an on-air correction. Reuters withdrew the article and replaced it with the headline, “Story withdrawn on Hassett’s comments on tariff pause.” Even the X user, Hammer Capital, was, by 10:40 a.m., interacting with media outlets to share the correction. In the event someone in your organization shares incorrect information, it is absolutely critical to your reputation to acknowledge the mistake, share the correct information and outline how you will do better in the future.
Unfortunately, this instance will not be the last time misinformation damages the economy or reputation.
As communicators, trust and credibility are the backbone of our profession. As journalists and social media influencers reflect on their roles in this debacle, the “pause on tariffs” event should serve as a lesson in responding to rapidly spreading misinformation in an age where a tweet can cost $2.4 trillion.
Megan Sweeney is the current public relations director at the American Staffing Association and former senior adviser for communications at the U.S. Department of Labor. She also serves as secretary for the PRSA National Capital Chapter.
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