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.
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.
This brief upturn was market volatility writ large
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.
How to strategise a route towards the sweet spot?
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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1:22
What’s going on with the stock markets?
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”.
It has been an extraordinary few hours which may well set the tone for a hugely consequential week ahead.
In the time that it took me to fly from London to Saudi Arabia, where President Donald Trump will begin a pivotal Middle East tour this week, a flurry of news has emerged on a range of key global challenges.
• On the Ukraine war: President Volodymyr Zelenskyy has said he is prepared to meet Russian President Vladimir Putin in Istanbul – this announcement came minutes after Trump urged Zelenskyy to agree to the meeting.
• On the China-US trade war: The White House says the two countries have agreed to a “trade deal”. China said the talks, in Geneva, were “candid, in-depth and constructive”.
All three of these developments represent dramatic shifts in three separate challenges and hint at the remarkable influence the US president is having globally.
This sets the ground for what could be a truly consequential week for Trump’s presidency and his ability to effect change.
On Ukraine, Putin held a late-night news conference at the Kremlin on Saturday at which he made the surprise proposal of talks with Zelenskyy in Istanbul this Thursday.
But he rejected European and US calls for an immediate ceasefire.
The move was widely interpreted as a delay tactic.
Trump then issued a social media post urging Zelenskyy to accept the Russian proposal; effectively to call Putin’s bluff.
The American president wrote: “President Putin of Russia doesn’t want to have a Cease Fire Agreement with Ukraine, but rather wants to meet on Thursday, in Turkey, to negotiate a possible end to the BLOODBATH. Ukraine should agree to this, IMMEDIATELY. At least they will be able to determine whether or not a deal is possible, and if it is not, European leaders, and the U.S., will know where everything stands, and can proceed accordingly! I’m starting to doubt that Ukraine will make a deal with Putin, who’s too busy celebrating the Victory of World War ll, which could not have been won (not even close!) without the United States of America. HAVE THE MEETING, NOW!!!”
“We await a full and lasting ceasefire, starting from tomorrow, to provide the necessary basis for diplomacy. There is no point in prolonging the killings. And I will be waiting for Putin in Türkiye on Thursday. Personally. I hope that this time the Russians will not look for excuses,” Zelenskyy wrote on X.
The prospect of Putin and Zelenskyy together in Istanbul on Thursday is remarkable.
It raises the possibility that Trump would want to be there too.
Image: President Volodymyr Zelenskyy welcomes other world leaders to Kyiv. Pic: Presidential Office of Ukraine/dpa/AP Images
Israel’s war in Gaza
On Gaza, it’s been announced that US envoy Steve Witkoff will arrive in Israel on Monday to finalise details for the release of Idan Alexander, an Israeli-American hostage being held by Hamas.
The development comes after it was confirmed that Mr Witkoff has been holding discussions with Israel, Qatar and Egypt and, through them, with Hamas.
The talks focused on a possible Gaza hostage deal and larger peace discussions for a ceasefire.
Meanwhile, officials from the United States and China have been holding talks in Geneva, Switzerland, to resolve their trade war, which was instigated by Trump’s tariffs against China.
Late on Sunday evening, the White House released a statement claiming that a trade deal had been struck.
In a written statement, titled “U.S. Announces China Trade Deal in Geneva”, treasury secretary Scott Bessent said: “I’m happy to report that we made substantial progress between the United States and China in the very important trade talks… We will be giving details tomorrow, but I can tell you that the talks were productive. We had the vice premier, two vice ministers, who were integrally involved, Ambassador Jamieson, and myself. And I spoke to President Trump, as did Ambassador Jamieson, last night, and he is fully informed of what is going on. So, there will be a complete briefing tomorrow morning.”
Beijing Global Times newspaper quoted the Chinese vice premier as saying that the talks were candid, in-depth and constructive.
However, the Chinese fell short of calling it a trade deal.
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In a separate development, US media reports say that Qatar is preparing to gift Trump a Boeing 747 from its royal fleet, which he would use as a replacement for the existing and aging Air Force One plane.
The Qatari government says no deal has been finalised, but the development is already causing controversy because of the optics of accepting gifts of this value.
Hamas has said it will release Edan Alexander, an Israeli soldier who holds American citizenship.
The group announced on Sunday that the 21-year-old, who is believed to be the last living American hostage in Gaza, will be released as part of ongoing efforts to achieve a permanent ceasefire with Israel.
Hamas, the militant group with which Israel has been at war since 7 October 2023, said Mr Alexander would be released on Monday.
The group said in a statement: “Hamas has been in contact with the US administration over the past few days.
“The movement has expressed a high degree of positivity, and the release of Israeli soldier Edan Alexander, a dual US citizen, will be part of the steps being taken to achieve a ceasefire, open the crossings, and allow aid and relief to reach our people in the Gaza Strip.”
Image: Donald Trump posing for photos with family members of Edan Alexander in New York last year. File pic: AP
Mr Alexander, who is from the US state of New Jersey, was 19 when he was taken from his base on the border with Gaza in southern Israel during the Hamas attacks on 7 October 2023.
His expected release has been described as a “gesture of goodwill” by Steve Witkoff, Mr Trump’s special envoy to the Middle East, who has been heavily involved in peace talks between Hamas and Israel.
He confirmed to Sky News’ US partner network NBC News that he is travelling to Israel to secure Mr Alexander’s release.
Edan Alexander deal ‘was reached before the US informed Israel’
The release of Edan Alexander is a success for US pressure on Hamas with help from mediators Egypt and Qatar.
US President Donald Trump thanked those countries in a post on Truth Social, notably with no mention of Israel. Hamas will get nothing in return and have said this is a goodwill gesture in the hope it will lead to progress on a ceasefire.
There will likely be a mixed reaction to Alexander’s release in Israel – on the one hand celebration another hostage is being released and the anticipation this will open the way for the remaining 58 to come out, but also anger that Trump has managed to do what their own prime minister hasn’t: a full hostage deal.
The current relationship between Trump and Benjamin Netanyahu is the talk of Jerusalem and Washington, so much so that both administrations have felt it necessary to deny any rift in recent days.
That might be so, but the Israeli media is reporting the Edan Alexander deal was reached before the US informed Israel.
If so, then this would be the latest example that this White House appears to believe it is more productive to do business without including Israel – the Houthi ceasefire and Iran nuclear talks being two other recent examples.
And Steve Witkoff, Trump’s man for all things, has reportedly voiced opposition to Israel’s plans to expand its military operation in Gaza, believing a full ceasefire is now the best way to end the fighting, release the hostages and prepare for the day-after in Gaza.
Trump will fly to the Middle East later on Monday, to visit Saudi Arabia, Qatar and the UAE, but not Israel.
To have a US president in the region but not dropping by Israel is being seen as a snub, especially during this current period of war.
The Israeli government has repeatedly been forced to play catch up to unfolding events, something it isn’t too used to doing with its close allies in Washington, and there will be concern that Arab leaders will be in the US president’s ear over the coming days, perhaps to the detriment of Netanyahu’s interests.
“We are picking him up probably tomorrow,” Mr Witkoff said. “There was a long negotiation with lots of people to thank.”
The Hostages Families Forum said it is “embracing and supporting” Mr Alexander’s family. It said his release should “mark the beginning of a comprehensive agreement that will secure the freedom of all remaining hostages”.
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0:55
From 7 May: Israeli military strikes kill dozens in Gaza
US special envoy Adam Boehler described the announcement as a “positive step forward” adding that the US would encourage Hamas to also “release the bodies of four other Americans that were taken”.
The announcement was made hours after a senior Palestinian official told Reuters that the US administration was involved in wider talks with Hamas alongside Egypt and Qatar in a “pursuit of an agreement”.
Mr Trump is also set to travel to the Middle East later this week, visiting Saudi Arabia, Qatar and the United Arab Emirates. The four-day trip is expected to focus heavily on business deals and new investments.
‘A goodwill gesture’
The office of Israeli Prime Minister Benjamin Netanyahu said it was told by the US that Mr Alexander’s release was “a goodwill gesture toward the Americans without compensation or conditions”.
It said the US told Israel the move is expected to lead to negotiations for the release of hostages, according to the original “Witkoff framework” – which Israel has already accepted.
The “Witkoff framework” was proposed in March. It involves Hamas releasing half of its remaining hostages – the militant group’s main bargaining chip – in exchange for a ceasefire extension and a promise to negotiate a lasting truce.
Hamas has always refused to accept the deal. It said it is willing to free all remaining hostages and agree to a permanent ceasefire if Israel pulls out completely from Gaza.
Around 59 hostages are still inside Gaza, around a third of them believed to be alive, after most of the rest were released in ceasefire agreements or other deals.
As Donald Trump heads to Saudi Arabia to begin his tour of the Middle East, Sky News’ US correspondent Mark Stone sits down with renowned journalist and analyst Abdulrahman al Rashed to discuss what the US president hopes to achieve during his visit, and the challenges he faces to his ultimate goals of peace and economic unity in the region.
Plus, why does the Saudi leadership prefer Mr Trump to his predecessor Joe Biden?
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