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Live news: US stocks hold gains as traders digest Fed outlook
US stocks opened at fresh record highs and Treasury yields dropped following the release of cooler than expected US inflation data on Wednesday, as investors bet on more interest rate cuts this year.
The S&P 500 was 0.9 per cent higher shortly after the open, while the Nasdaq Composite rose 1.2 per cent.
After Wednesday’s figures, traders in the futures market fully priced in two interest rate cuts this year, beginning in November, according to Bloomberg. Previously the average estimate was between one and two.
Traders also amped up bets on a September cut, putting the odds at 84 per cent, compared with a 60 per cent chance beforehand.
The two-year Treasury yield, which moves with interest rate expectations, fell to its lowest level since early April, down 0.16 percentage points to 4.68 per cent.
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Trump threatened to invoke the Insurrection Act (again). What is it?
Law enforcement officers stand amid tear gas at the scene of a shooting Wednesday in Minneapolis.
Adam Gray/AP
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Adam Gray/AP
President Trump on Thursday threatened to invoke the Insurrection Act to suppress protests in Minnesota, a week after an ICE agent fatally shot a 37-year-old Minneapolis woman.
The shooting death of Renee Macklin Good sparked protests nationwide against ICE’s continued presence in Minnesota and across the country.
Protesters were further incensed on Wednesday evening when ICE agents in Minneapolis shot a Venezuelan immigrant in the leg during an attempted arrest.
Writing on Truth Social, Trump said: “If the corrupt politicians of Minnesota don’t obey the law and stop the professional agitators and insurrectionists from attacking the Patriots of I.C.E., who are only trying to do their job, I will institute the INSURRECTION ACT, which many Presidents have done before me, and quickly put an end to the travesty that is taking place in that once great State.”
The act is one way the president can send troops to states to restore law and order. But unlike in Trump’s National Guard deployments in 2025, the Insurrection Act would allow armed forces to carry out law enforcement functions, such as making arrests and conducting searches.
The law could open the door to significantly expanding the military’s role in quelling protests, protecting federal buildings and carrying out immigration enforcement, which some of Trump’s aides have suggested he do.
Since Thomas Jefferson signed it into law in 1807, the Insurrection Act has only been invoked about 30 times. The last instance was over three decades ago. During his second term, Trump has repeatedly brought up the idea of invoking the statute.
“If people were being killed and courts were holding us or governors or mayors were holding us up, sure I’d do that,” he told reporters back in early October.
Trump has also erroneously claimed that nearly half of all U.S. presidents have invoked the law and that it was invoked 28 times by a single president, as he said during an interview with CBS’ 60 Minutes in late October.
In reality, only 17 out of 45 presidents — or 37% — utilized the law, according to the Brennan Center for Justice, a nonpartisan law and policy organization that in 2022 tracked all Insurrection Act invocations. The group also did not find a president who invoked the emergency powers more than six times, as Ulysses S. Grant did during the Reconstruction era.
The White House did not release a statement on the president’s threat.
Here’s what to know.
How would the Insurrection Act get used?
There are three ways that the president can invoke the Insurrection Act, according to the Brennan Center for Justice.
The first is at the request of a state’s legislature or governor facing an “insurrection.” The law itself does not elaborate on what qualifies as an insurrection, but legal scholars generally understand the term as referring to a violent uprising of some kind.
In the second path, the president does not need a state’s consent to deploy troops when “unlawful obstructions, combinations, or assemblages, or rebellion” makes it “impracticable” to enforce federal laws.
The third path also does not require the affected state’s support. In this case, the president can send in the military to suppress an insurrection that “hinders the execution of the laws” or “opposes or obstructs the execution of the laws of the United States or impedes the course of justice under those laws.”
Before invoking the Insurrection Act, the president must first order the “insurgents” to disperse within a limited amount of time.
How would troop deployments differ under the Insurrection Act?
So far during Trump’s second term, National Guard troops have been called into Los Angeles, Chicago and Portland, Ore., under a statute known as Title 10, which places the force under federal control. The operations in Memphis and Washington, D.C., were authorized under Title 32, meaning they were under state command. (The situation in D.C is unique since the federal district is not a state and therefore does not have a governor.)

Under these deployments, Guard forces are subject to the Posse Comitatus Act, which generally prohibits federal military personnel from acting as police on American streets. It’s rooted in one of the nation’s founding principles, which opposes military involvement in civilian affairs.
The Insurrection Act, however, is a key exception to the law.
The controversial emergency powers were last used during the 1992 Los Angeles riots after the acquittal of four police officers in the beating of Rodney King.
Former President George H.W. Bush invoked the law at the request of then-California Gov. Pete Wilson, who was worried that local law enforcement could not quell the unrest alone.
But that deployment also showed the risks of using military personnel as law enforcement. In an infamous moment, LA police officers asked a group of Marines to “cover” them as they approached a house. The Marines interpreted their request as asking them to open fire, while the police officers actually wanted them to stay on guard.

“The Marines then lay down suppressing fire. The police were completely aghast,” Mick Wagoner, a retired Marine Corps lieutenant colonel, told NPR earlier this year.
How much power does the Insurrection Act give the president?
Some of the Insurrection Act’s power comes from what’s not actually in it.
Terms like “insurrection,” “rebellion” and “impracticable” are loosely defined and give broad deference to the president, according to William Banks, professor emeritus of law at Syracuse University and an expert in national security and emergency powers.
“It’s incredibly open-ended and grants him a dramatic amount of discretion to federalize an incident,” he added.
The law also does not mention time constraints on the troop deployments. Nor does it involve Congress in the process to maintain checks and balances, Banks added.
The Insurrection Act has also been rarely tested in the courts. Trump himself described the Insurrection Act as providing legal cover.

“Do you know that I could use that immediately and no judge can even challenge you on that. But I haven’t chosen to do it because I haven’t felt we need it,” he said during the October 60 Minutes interview.
Despite its broad language, legal experts argue that historical precedent matters when it comes to the Insurrection Act.
If Trump were to invoke the law to address crime or enforce immigration laws, it would represent a sharp departure from past uses and would likely face legal challenges, according to Laura A. Dickinson, a professor at The George Washington University Law School who focuses on national security.
“ While it seems very broad on its face, it’s not a blank check,” she said.
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Trump says he’s been assured Tehran has stopped killing protesters as Iran reopens its airspace – live
Opening summary
Welcome to our continuing live coverage of the crisis in Iran.
Donald Trump says he has been assured that the killing of Iranian protesters has been halted, adding when asked about whether the threatened US military action was now off the table that he will “watch it and see”.
The president said at the White House that “very important sources on the other side” had now assured him that Iranian executions would not go ahead. “They’ve said the killing has stopped and the executions won’t take place,” Trump said. “There were supposed to be a lot of executions today and that the executions won’t take place – and we’re going to find out.”
Earlier, Iranian foreign minister Abbas Araghchi told Fox News that executions executions were not taking place and there would be “no hanging today or tomorrow”. “I’m confident that there is no plan for hanging.”
The family of Erfan Soltani, the first Iranian protester sentenced to death since the current unrest began, has been told his execution has been postponed.
Here are some of the other latest developments:
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Trump said Iranian opposition figure Reza Pahlavi “seems very nice” but expressed uncertainty about whether Pahlavi would be able to muster support within Iran to eventually take over. “I don’t know how he’d play within his own country,” Trump told Reuters in the Oval Office. “And we really aren’t up to that point yet. I don’t know whether or not his country would accept his leadership, and certainly if they would, that would be fine with me.”
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Iran has reopened its airspace after a near-five-hour closure that forced airlines to cancel, reroute or delay some flights.
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The United Nations security council is scheduled to meet on Thursday afternoon for “a briefing on the situation in Iran”, according to a spokesperson for the Somali presidency. The scheduling note said the briefing was requested by the US.
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Some US and UK personnel have been evacuated as a precaution from sites in the Middle East. The British embassy in Tehran has also been temporarily closed.
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Spain, Italy and Poland advised their citizens to leave Iran. It followed a call by the US urging its citizens to leave Iran, suggesting land routes to Turkey or Armenia.
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Araghchi insisted the situation was “under control” and urged the US to engage in diplomacy. “Now there’s calm,” the Iranian foreign minister said. “We have everything under control, and let’s hope that wisdom prevails and we don’t end up in a situation of high tension that would be catastrophic for everyone.”
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The death toll in Iran from the regime’s crackdown stands at 2,571 people, according to the US-based Human Rights Activists news agency. More than 18,100 have been arrested, it said.
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Foreign ministers from the G7 group said they were “prepared to impose additional restrictive measures” on Iran over its handling of the protests, and the “deliberate use of violence, the killing of protesters, arbitrary detention and intimidation tactics”.
Key events
AI-generated videos purportedly depicting protests in Iran have flooded the web, researchers say, as social media users push hyper-realistic deepfakes to fill an information void amid the country’s internet restrictions.
US disinformation watchdog NewsGuard said it identified seven AI-generated videos depicting the Iranian protests – created by both pro- and anti-government actors – that had collectively amassed about 3.5m views across online platforms.
Among them was a video shared on Elon Musk’s X showing women protesters smashing a vehicle belonging to the Basij, the Iranian paramilitary force deployed to suppress the protests, reports Agence France-Presse.
One X post featuring the AI clip – shared by what NewsGuard described as anti-regime users – garnered nearly 720,000 views. Anti-regime X and TikTok users in the US also posted AI videos depicting Iranian protesters symbolically renaming local streets after Donald Trump.
The AI creations highlight the growing prevalence of what experts call “hallucinated” visual content on social media during major news events, often overshadowing authentic images and videos.
Tensions between the US and Iran have appeared to ease as Donald Trump adopted a more measured tone towards Tehran and suggested a pause in his decision on threatened US military action. As you can read in our fresh full report, Trump had spoken repeatedly in recent days about coming to the aid of the Iranian people over the ruling regime’s crackdown on protests that a human rights group says has now killed at least 3,428 people and led to the arrest of more than 10,000.
But as mentioned earlier, Trump said in a surprise announcement at the White House that he had received assurances from “very important sources on the other side” that Tehran had now stopped the use of lethal force on protesters and that executions would not go ahead.
Asked if US military action was now off the table, Trump responded: “We’re going to watch it and see what the process is.”
You can read the full report here:
Moving for a moment to Australia, protesters have staged a rally outside the Iranian embassy in Canberra to demand regime change in Iran. About 100 demonstrators chanted “democracy for Iran” and “King Reza Pahlavi”, a reference to the last Iranian shah’s exiled son – a key figure in the anti-government protests.
James Younessi, a Sydney doctor who spoke at the demonstration, said he would happily move back to his home country if the regime was overthrown, Australian Associated Press has reported.
But he was hesitant about more American intervention in the Middle East, saying:
I don’t want Iran to be indentured to any foreign nation the moment anybody interferes. But if it means saving one life for it, we want a measured response that we can have this bloodshed ended.
Another protester, Omid Fakhri, who hadn’t heard from his family in Iran because of the internet blackout, was more positive about US military action.
“We don’t care which military, just a military is fine, as long as they can go in and stop the massacre,” he said. Foreign minister Penny Wong said Australia continued to urge people not to travel to Iran, and warned the security situation could deteriorate rapidly.
A little more now on Iran’s reopening of its airspace to flights after a near-five-hour closure that forced airlines to cancel, reroute or delay some flights.
Iran closed its airspace to all flights except international ones to and from Iran with official permission at 10.15pm GMT on Wednesday, according to a notice on the US Federal Aviation Administration website.
The notice was removed shortly before 3am GMT, according to tracking service Flightradar24, which showed five flights from Iranian carriers Mahan Air, Yazd Airways and AVA Airlines were among the first to resume over the country.
The price of oil dropped on Thursday after concerns over instability in Iran were eased by comments from Donald Trump, and gold and silver prices also dipped.
West Texas Intermediate fell 3.0% to $60.16 a barrel while Brent crude was down 2.93% to $64.57.
The plunge came after the US president said he had been told the killings of protesters in Iran had been halted.
Reaction across Asian markets has been mixed as trading got under way on Thursday. Hong Kong, Shanghai, Taipei, Wellington, Mumbai and Kuala Lumpur fell, while Sydney, Seoul, Bangkok and Manila posted minimal gains. Concern that the Iran situation could restrict supplies of crude had caused oil prices to rise about 1.5% on Wednesday.
India has advised its citizens to leave Iran by any transport possible.
The Indian embassy in Tehran said in a post on X: Indian nationals who are currently in Iran (students, pilgrims, business persons and tourists) are advised to leave Iran by available means of transport, including commercial flights.
The embassy also advised its citizens to be cautious and “avoid areas of protests or demonstrations”.
The US, Germany and Spain are among the counties reported to have earlier advised their citizens to leave Iran.
Welcome to our continuing live coverage of the crisis in Iran. Donald Trump says he has been assured that the killing of Iranian protesters has been halted, adding when asked about whether the threatened US military action was now off the table that he will “watch it and see”.
The president said at the White House that “very important sources on the other side” had now assured him that Iranian executions would not go ahead. “They’ve said the killing has stopped and the executions won’t take place,” Trump said. “There were supposed to be a lot of executions today and that the executions won’t take place – and we’re going to find out.”
Earlier, Iranian foreign minister Abbas Araghchi told Fox News that executions executions were not taking place and there would be “no hanging today or tomorrow”. “I’m confident that there is no plan for hanging.”
The family of Erfan Soltani, the first Iranian protester sentenced to death since the current unrest began, has been told his execution has been postponed.
Here are some of the other latest developments: Trump said Iranian opposition figure Reza Pahlavi “seems very nice” but expressed uncertainty about whether Pahlavi would be able to muster support within Iran to eventually take over. “I don’t know how he’d play within his own country,” Trump told Reuters in the Oval Office. “And we really aren’t up to that point yet. I don’t know whether or not his country would accept his leadership, and certainly if they would, that would be fine with me.”
Iran has reopened its airspace after a near-five-hour closure that forced airlines to cancel, reroute or delay some flights.
The United Nations security council is scheduled to meet on Thursday afternoon for “a briefing on the situation in Iran”, according to a spokesperson for the Somali presidency. The scheduling note said the briefing was requested by the US.
Some US and UK personnel have been evacuated as a precaution from sites in the Middle East. The British embassy in Tehran has also been temporarily closed.
Spain, Italy and Poland advised their citizens to leave Iran. It followed a call by the US urging its citizens to leave Iran, suggesting land routes to Turkey or Armenia.
Araghchi insisted the situation was “under control” and urged the US to engage in diplomacy. “Now there’s calm,” the Iranian foreign minister said. “We have everything under control, and let’s hope that wisdom prevails and we don’t end up in a situation of high tension that would be catastrophic for everyone.”
The death toll in Iran from the regime’s crackdown stands at 2,571 people, according to the US-based Human Rights Activists news agency. More than 18,100 have been arrested, it said.
Foreign ministers from the G7 group said they were “prepared to impose additional restrictive measures” on Iran over its handling of the protests, and the “deliberate use of violence, the killing of protesters, arbitrary detention and intimidation tactics”.
Oil prices plunge as Iran instability fears ease
India latest country to urge its citizens to leave Iran
Opening summary
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Trump administration sends letter wiping out addiction, mental health grants
A demonstrator holds a sign during International Overdose Awareness Day on Aug. 28, 2024 in New York City.
Erik McGregor/LightRocket via Getty Images
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Erik McGregor/LightRocket via Getty Images
The Trump administration sent shockwaves through the U.S. mental health and drug addiction system late Tuesday, sending hundreds of termination letters, effective immediately, for federal grants supporting health services.

Three sources said they believe total cuts to nonprofit groups, many providing street-level care to people experiencing addiction, homelessness and mental illness, could reach roughly $2 billion. NPR wasn’t able to independently confirm the scale of the grant cancellation. The U.S. Substance Abuse and Mental Health Services Administration (SAMSHA) didn’t respond to a request for clarification.
“We are definitely looking at severe loss of front-line capacity,” said Andrew Kessler, head of Slingshot Solutions, a consultancy firm that works with mental health and addiction groups nationwide. “[Programs] may have to shut their doors tomorrow.”
Kessler said he has reviewed numerous grant termination letters from “Salt Lake City to El Paso to Detroit, all over the country.”
Ryan Hampton, the founder of Mobilize Recovery, a national advocacy nonprofit for people in and seeking recovery, told NPR his group lost roughly $500,000 “overnight.”
“Waking up to nearly $2 billion in grant cancellations means front-line providers are forced to cease overdose prevention, naloxone distribution, and peer recovery services immediately, leaving our communities defenseless against a raging crisis,” Hampton said. “This cruelty will be measured in lives lost, as recovery centers shutter and the safety net we built is slashed overnight. We are witnessing the dismantling of our recovery infrastructure in real-time, and the administration will have blood on its hands for every preventable death that follows.”
Copies of the letter sent to two different organizations and reviewed by NPR signal that SAMHSA officials no longer believe the defunded programs align with the Trump administration’s priorities.
The letter points to efforts to reshape the national health system in part by restructuring SAMHSA’s grant program, which “includes terminating some of its … awards.”
According to the letter, grants are terminated as of Jan.13, adding that “costs resulting from financial obligations incurred after termination are not allowable.”
The National Association of County Behavioral Health and Developmental Disability Directors sent a letter to members saying it believes “over 2,000 grants [nationwide] with a total of more than $2 billion” are affected. The group said it’s still working to understand the “full scope” of the cuts.
This move comes on top of deep Medicaid cuts, passed last year by the Republican-controlled Congress, which affect numerous mental health and addiction care providers.
Kessler told NPR he’s hearing alarm from care providers nationwide that the safety net for people experiencing an addiction or mental health crisis could unravel.
“In the short term, there’s going to be severe damage. We’re going to have to scramble,” he said.
Regina LaBelle, a Georgetown University professor who served as acting head of the Office of National Drug Control Policy during the Biden administration, said the SAMHSA grants pay for lifesaving services.
“From first responders to drug courts, continued federal funding quite literally save lives,” LaBelle said. “The overdose epidemic has been declared a public health emergency and overdose deaths are decreasing. This is no time to pull critical funding.”
Requests for comment from SAMHSA and the Department of Health and Human Services were not immediately returned.
This is a developing story.
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