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”.
Police have taken 21 children into custody, amid allegations that a couple in Los Angeles may have misled surrogate mothers across the US.
Silvia Zhang, 38, and Guojun Xuan, 65, are believed to be the legal parents of the children, who are aged between two months and 13 years old.
“We believe one or two were born biologically to the mother,” Lieutenant Kollin Cieadlo said. “There are some surrogates who have come forward and said they were surrogates for the children.”
“The couple told police that they wanted a large family,” he added.
Image: The home of Silva Zhang and Guojun Xuan, northeast of downtown Los Angeles
Fifteen children were removed from the couple’s home in Arcadia, about 13 miles northeast of downtown Los Angeles, after an abuse allegation was made. Another six living in the care of family and friends were also located.
The couple were arrested in May after a hospital reported that their two-month-old infant had a traumatic head injury – with a nanny accused of violently shaking the baby.
The infant was not taken to hospital until two days later, after they began suffering seizures.
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CCTV footage recorded inside the home showed the children being emotionally and physically abused by at least six nannies.
Image: The couple’s property had CCTV cameras, which police said recorded footage of abuse by nannies. Pic: AP
Lt Cieadlo said Zhang had produced what appeared to be legitimate birth certificates, including some from outside California, that list her as the mother of the children.
Business records show a company called Mark Surrogacy Investment LLC was previously registered at the couple’s address, although the most recent documents show the business licence ended in June.
Police said they are investigating whether the children found at the home in the San Gabriel Valley were part of a surrogacy scam.
Lt Cieadlo also confirmed officers were working with the FBI as part of their investigation.
Kayla Elliott, one of the surrogate mothers who has come forward, told Sky’s US partner NBC News: “I was a bit hysterical. You just don’t expect that you’re going to go through a pregnancy and a delivery and then hand the baby over to their parents and then all of a sudden find out that there was abuse and neglect going on.”
Arrest warrants were issued for Zhang, Xuan and the 56-year-old nanny, who was not in custody on Wednesday. Zhang and Xuan were detained on suspicion of child endangerment/neglect.
The Los Angeles County Department of Children and Family Services, which removed the couple’s children, declined to comment on the case.
Disgraced British socialite Ghislaine Maxwell could use “government misconduct” to challenge her imprisonment, her family has claimed.
The 63-year-old, who was jailed in 2022 for luring young girls to massage rooms for Jeffrey Epstein to abuse, is currently serving a 20-year prison sentence.
Maxwell’s family have frequently claimed she “did not receive a fair trial”, but legal appeals against her sex trafficking convictions have been rejected by the courts.
The latest challenge from the Maxwell family comes as President Donald Trump faces questions over whether or not he will order the release of the so-called Epstein “client list”, following a backlash from Republican loyalists who have called for any list to be made public.
Image: Ghislaine Maxwell. Pic: US Department of Justice
The family argue that Maxwell should have been protected under an agreement Epstein had entered with the US Department of Justice in 2007, which agreed not to prosecute any of his co-conspirators.
During her trial in 2021, Maxwell was described as “dangerous” by prosecutors, who told jurors about how she would entice vulnerable girls to go to Epstein’s properties for him to sexually abuse.
In a statement, her family said: “Our sister Ghislaine did not receive a fair trial.
“Her legal team continues to fight her case in the courts and will file its reply in short order to the government’s opposition in the US Supreme Court.”
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20:18
Is Trump in a corner over Epstein?
David Oscar Markus, one of her lawyers, said in the statement released by her family: “I’d be surprised if President Trump knew his lawyers were asking the Supreme Court to let the government break a deal.
“He’s the ultimate dealmaker and I’m sure he’d agree that when the United States gives its word, it should keep it.
“With all the talk about who’s being prosecuted and who isn’t, it’s especially unfair that Ghislaine Maxwell remains in prison based on a promise the US government made and broke.’
“These are sentiments with which we profoundly concur.”
Epstein, 66, was found dead in his cell at a Manhattan federal jail in August 2019 as he awaited trial on sex trafficking charges. His death was ruled a suicide.