Wall street's ai-driven decisions raise concerns over market volatility

On April 7, 2025, U.S. stocks faced a sharp decline at 10:08 a.m. However, a circulating claim on X suggested that Kevin Hassett, director of the White House National Economic Council, had proposed a 90-day tariff pause for all countries except China. Market-focused accounts rapidly spread the unconfirmed report, with CNBC repeating it on air and Reuters publishing a report citing CNBC. This led to an immediate rebound in the S&P 500 as traders anticipated a cooling trade war. The White House later labeled the report as 'fake news,' prompting CNBC to retract the claim and Reuters to remove its headline. The market swung by roughly $2.4 trillion between 10:08 and 10:18 a.m., according to Dow Jones Market Data. This incident, which occurred before the current push for AI authority, highlights a growing concern about the risks of relying on AI-driven decisions in financial markets. AI agents can now gather, interpret, and act on information, raising questions about the potential for rapid, volatile market movements.