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.
“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.
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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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”.
