A rumour on social media fuelled a brief upturn for struggling US stock markets – but they swiftly swung back down again after the claim was debunked by the White House.
Markets around the world have struggled since some of Donald Trump’s new import tariffs came into effect over the weekend.
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The US markets opened on Monday with a fall for the third day in a row but briefly rallied and showed growth of over 2% at 3.15pm UK time.
The upturn came after a social media rumour claimed a top Trump administration adviser had suggested the president could be considering a 90-day pause on tariffs.
The origin of the false report was unclear but it appeared to be a misinterpretation of a comment made by a White House employee during a Fox News interview.
Asked if the US president would consider a pause, Kevin Hassett, White House National Economic Council director, said: “I think the president is going to decide what the president is going to decide.
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“There are more than 50 countries in negotiation with the president.”
Nearly two hours later, multiple X accounts posted identical messages claiming Mr Hassett said a pause – for all countries except China – was being considered.
The identical posts were picked up by some news outlets and stock traders, sending the markets skyrocketing.
However, when the White House said any talk of a pause was “fake news”, they were sent back into the red.
US correspondent
It was the stock market as a spectator sport.
The moment, mid-morning, when a Trump aide had given a TV interview and subsequent headlines screamed that Trump was considering a 90-day pause on tariffs.
Suddenly, the markets went from red to green.
Make that green to red, just minutes later, when the White House dismissed the story as fake news, insisting there would be no pause.
Investors duly reverted back to panic mode.
It was market volatility writ large.
The stance inside the White House can be best characterised as ‘panic, what panic?’.
Donald Trump on Monday joked his way through a photo call with the Los Angeles Dodgers, winners of baseball’s World Series, ahead of his meeting with Israeli Prime Minister Benjamin Netanyahu.
For those two men, there is much on the agenda, of course – not least the collapse of the ceasefire in Gaza.
On that, this will be an important stage in a grinding diplomacy that has ground to a halt around a ceasefire.
On tariffs, with Netanyahu, there will be a first look at how negotiations work with the punitive president.
Israel faces a 17% tariff from its largest trade partner and ally.
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With Trump’s first visitor since the tariff announcement comes a first test of how negotiations work and what they produce.
The world will be watching agog – as all the world has a stake.
Mr Trump has remained defiant despite fears that his levies could be pushing the US towards a recession.
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The US president has insisted the taxes are necessary for rebuilding domestic manufacturing and resetting trade relationships with other countries.
“Be Strong, Courageous, and Patient, and GREATNESS will be the result!” he wrote on Truth Social on Monday.
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Mr Trump – who played golf in Florida over the weekend – has also threatened an extra tariff on China, after Beijing announced a retaliatory levy on the US.
He said if Beijing does not withdraw its retaliatory tax, the US will impose an additional 50% levy on China and “negotiations with other countries, which have also requested meetings, will begin taking place immediately”.
