Why is the dumb term "Hispanic" often used by others as a race or ethnicity?

.....when in reality it's neither.Take for example Mexican actress "Edith Gonzalez",whose race is White and traces her ethnic roots to Spain(Europe),While Cuban singer"Celia Cruz"(RIP)whose race is Black and traces her ethnic roots to a Subsaharan African country.(due to slavery there exists a Black Spanish-speaking population in Cuba)These to women in the U.S.A. Would be identified as "Hispanic" yet they are not of the same race or ethnicity.