Hungary welcomes Netanyahu and says it will leave the International Criminal Court

BUDAPEST, Hungary (AP) — Hungary will begin the process of withdrawing from the International Criminal Court, an official said Thursday, just as Israeli Prime Minister Benjamin Netanyahu arrived to red carpet treatment in the country’s capital despite an arrest warrant from the world’s only permanent global tribunal for war crimes and genocide.

Prime Minister Viktor Orbán gave the Israeli leader a welcome with full military honors in Budapest’s Castle District. The two close allies stood side by side as a military band played and an elaborate procession of soldiers on horseback and carrying swords and bayoneted rifles marched by.

As the ceremony unfolded, Orbán’s chief of staff, Gergely Gulyás, released a brief statement saying that “the government will initiate the withdrawal procedure” for leaving the court, which could take a year or more to complete.

Orbán later said that he believes the ICC is “a political court.”

Netanyahu’s visit to Hungary, which is scheduled to last until Sunday, was only his second foreign trip since the ICC issued the warrant against him in November.

The ICC, based in The Hague, Netherlands, said when issuing its warrant that there was reason to believe Netanyahu and former Israeli Defense Minister Yoav Gallant had committed crimes against humanity in connection with the war in Gaza.

The war began when Hamas-led militants attacked southern Israel on Oct. 7, 2023, killing around 1,200 people, mostly civilians, and taking 251 hostages, most of whom have since been released in ceasefire agreements and other deals. Israel rescued eight living hostages and has recovered dozens of bodies.

The ICC also issued arrest warrants for three Hamas leaders who were later killed.

Israel’s offensive in Gaza has killed more than 50,000 Palestinians, according to the enclave's Health Ministry, which doesn’t say whether those killed are civilians or combatants. Israel says it has killed around 20,000 militants, without providing evidence, and resumed its campaign last month, shattering a ceasefire.

After the ICC issued the warrant, Orbán invited Netanyahu to Budapest, and accused the court of “interfering in an ongoing conflict for political purposes.” That invitation was in open defiance of the court’s ruling and contradicted Hungary’s obligations as a signatory to arrest any suspects facing a warrant if they set foot on their soil.

All countries in the 27-member European Union, including Hungary, are signatories, but the court relies on member countries to enforce its rulings. Hungary joined the court in 2001 during Orbán’s first term as prime minister.

At a news conference following their meeting, Orbán said that he believes the ICC is “no longer an impartial court, not a court of law, but a political court. And this was most clearly shown by the decisions regarding Israel.”

“I am convinced that this otherwise important international judicial forum has been degraded into a political tool, with which we cannot and do not want to engage,” Orbán said.

The Hungarian leader, regarded by critics as the EU’s most intransigent spoiler in the bloc’s decision-making, is seen as using some of the tactics that Netanyahu has been accused of employing in Israel: subjugation of the judiciary, antagonism toward the EU and cracking down on civil society and human rights groups.

During the news conference, where journalists weren't permitted to ask questions, Netanyahu praised Hungary’s decision, thanking Orbán for taking a “bold and principled decision.”

“The ICC directs its actions against us fighting a just war with just means,” Netanyahu said, calling Hungary "the first state that walks out of this corruption and this rottenness, and I think it’ll be deeply appreciated, not only in Israel but in many, many countries around the world.”

Netanyahu’s visit to Hungary was his second opportunity to travel abroad following the issuance of the warrant — the first was when he met with U.S. President Donald Trump in Washington in February. It was also a chance to project an image of statesmanship while he faces mounting discontent at home.

He has faced mass protests by Israelis who fear his decision to resume the war in Gaza endangers the lives of the remaining hostages held by Hamas. He has also sparked anger by trying to fire or sideline top officials in what critics view as a power grab and an attack on state institutions.

Along with resuming its offensive in Gaza last month, Israel halted all imports of food, fuel and humanitarian aid to the territory’s 2 million Palestinians to pressure Hamas to release more hostages and accept proposed changes to the truce agreement.

The ICC has criticized Hungary’s decision to defy its warrant for Netanyahu, with the court's spokesperson, Fadi El Abdallah, saying on Thursday that the court “recalls that Hungary remains under a duty to cooperate with the ICC.”

Hamas said in a statement that it considers the move by Hungary an “immoral stance that shows collusion with a war criminal who is running away from justice.” The militant group called on Hungary to reverse its decision and hand Netanyahu over to the ICC to stand trial.

Molly Quell in Amsterdam and Bassem Mroue in Beirut contributed to this report.

Israeli Prime Minister Benjamin Netanyahu speaks during a press statement at the Carmelite Monastery in the Buda Castle in Budapest, Hungary, Thursday, April 3, 2025. (AP Photo/Denes Erdos)

Hungarian Prime Minister Viktor Orban speaks during a press statement at the Carmelite Monastery in the Buda Castle in Budapest, Hungary, Thursday, April 3, 2025. (AP Photo/Denes Erdos)

Israeli Prime Minister Benjamin Netanyahu speaks during a press statement at the Carmelite Monastery in the Buda Castle in Budapest, Hungary, Thursday, April 3, 2025. (AP Photo/Denes Erdos)

Hungarian Prime Minister Viktor Orban speaks during a press statement at the Carmelite Monastery in the Buda Castle in Budapest, Hungary, Thursday, April 3, 2025. (AP Photo/Denes Erdos)

Hungarian Prime Minister Viktor Orban, left, and Israeli Prime Minister Benjamin Netanyahu shake hands after a press statement at the Carmelite Monastery in the Buda Castle in Budapest, Hungary, Thursday, April 3, 2025. (AP Photo/Denes Erdos)

Hungarian Prime Minister Viktor Orban, left, and Israeli Prime Minister Benjamin Netanyahu, right, shake hands after a press statement at the Carmelite Monastery in the Buda Castle in Budapest, Hungary, Thursday, April 3, 2025. (AP Photo/Denes Erdos)

Hungarian Prime Minister Viktor Orban, left, speaks during a press statement next to Israeli Prime Minister Benjamin Netanyahu, right, at the Carmelite Monastery in the Buda Castle in Budapest, Hungary, Thursday, April 3, 2025. (AP Photo/Denes Erdos)

Israeli Prime Minister Benjamin Netanyahu, left, and Hungarian Prime Minister Viktor Orban, right, talk after a welcoming ceremony with a guard of honor at Buda Castle in Budapest, Hungary, on Thursday, April 3, 2025. (AP Photo/Denes Erdos)

Israeli Prime Minister Benjamin Netanyahu, center left, and Hungarian Prime Minister Viktor Orban, center right, participate in a welcoming ceremony with a guard of honor at Buda Castle in Budapest, Hungary, on Thursday, April 3, 2025. (AP Photo/Denes Erdos)

Israeli Prime Minister Benjamin Netanyahu, left, and Hungarian Prime Minister Viktor Orban, right, participate in a welcoming ceremony with a guard of honor at Buda Castle in Budapest, Hungary, April 3, 2025. (AP Photo/Denes Erdos)

Israeli Prime Minister Benjamin Netanyahu, right, and Hungarian Prime Minister Viktor Orban, left, participate in a welcoming ceremony with a guard of honor at Buda Castle in Budapest, Hungary, April 3, 2025. (AP Photo/Denes Erdos)

Hungarian Prime Minister Viktor Orban, arrives at a welcoming ceremony with a guard of honor for Israeli Prime Minister Benjamin Netanyahu at Buda Castle in Budapest, Hungary, on Thursday, April 3, 2025. (AP Photo/Denes Erdos)

Hungarian guards wait before a welcoming ceremony of Israeli Prime Minister Benjamin Netanyahu at Buda Castle in Budapest, Hungary, on Thursday, April 3, 2025. (AP Photo/Denes Erdos)

Israeli Prime Minister Benjamin Netanyahu, left, and Hungarian Prime Minister Viktor Orban, right, talk after a welcoming ceremony with a guard of honor at Buda Castle in Budapest, Hungary, on Thursday, April 3, 2025. (AP Photo/Denes Erdos)

NEW YORK (AP) — U.S. stocks are careening through a manic Monday after President Donald Trump threatened to crank his tariffs higher, despite a stunning display from Wall Street showing how dearly it wants him to do the opposite.

The S&P 500 was down 0.8% in late trading, but only after a shocking day of heart-racing reversals as battered financial markets try to figure out what Trump’s ultimate goal is for his trade war. If it’s to get other countries to agree to trade deals, he could lower his tariffs and avoid a possible recession. But if it’s to remake the economy and stick with tariffs for the long haul, stock prices may need to fall further.

The Dow Jones Industrial Average was down 563 points, or 1.5%, with a little less than an hour remaining in trading, while the Nasdaq composite was 0.6% lower.

All three indexes started the day sharply lower, and the Dow plunged as many as 1,700 points following even worse losses worldwide on worries that Trump's tariffs could torpedo the global economy. But it suddenly surged to a gain of nearly 900 points. The S&P 500, meanwhile, went from a loss of 4.7% to a leap of 3.4%, which would have been its biggest jump in years.

The sudden rise followed a false rumor that Trump was considering a 90-day pause on his tariffs, one that a White House account on X quickly labeled as “fake news.” Stocks then turned back down. That a rumor could move trillions of dollars' worth of investments shows how much investors are hoping to see signs that Trump may let up on tariffs.

But soon after that, Trump threatened to raise tariffs further against China after the world's second-largest economy retaliated last week with its own set of tariffs on U.S. products.

It’s a slap in the face to Wall Street, not just because of the sharp losses it’s taking, but because it suggests Trump may not be moved by its pain. Many professional investors had long thought that a president who used to crow about records reached under his watch would pull back on policies if they sent the Dow reeling.

On Sunday Trump told reporters aboard Air Force One that he does not want markets to fall. But he also said he wasn’t concerned about a sell-off, saying “sometimes you have to take medicine to fix something.”

Trump has given several reasons for his stiff tariffs, including to bring manufacturing jobs back to the United States, which is a process that could take years. Trump on Sunday said he wanted to bring down the numbers for how much more the United States imports from other countries versus how much it sends to them.

Still, indexes kept swerving between losses and gains Monday, even after Trump threatened to raise his tariffs, because hope still remains in markets that negotiations may still come.

“Could things get worse? Of course they could," said Nate Thooft, a senior portfolio manager at Manulife Investment Management. “We’re not calling the all-clear at all, but when you have this type of volatility in the market, of course you're going to have back and forth” in markets not just day to day but also hour to hour.

“We’re all waiting for the next bit of information,” he said. “Literally a Truth Social tweet or an announcement of some sort about real negotiations could dramatically move this market. This is the world we live in right now.”

All that seems to be certain is that the financial pain hammered investments around the world on Monday, the third straight day of steep losses after Trump announced tariffs in his “Liberation Day.”

Stocks in Hong Kong plunged 13.2% for their worst day since 1997. A barrel of benchmark U.S. crude oil dipped below $60 during the morning for the first time since 2021, hurt by worries that a global economy weakened by trade barriers will burn less fuel. Bitcoin sank below $79,000, down from its record above $100,000 set in January, after holding steadier than other markets last week.

Nike dropped 4% for one of the larger losses on Wall Street. Not only does it sell a lot of shoes and apparel in China, it also makes much of it there. Last fiscal year, factories in China made 18% of its Nike brand footwear. Vietnam made 50%, and Indonesia made 27%.

Trump’s tariffs are an attack on the globalization that’s remade the world’s economy, which helped bring down prices for products on the shelves of U.S. stores but also caused production jobs to leave for other countries.

It also adds pressure on the Federal Reserve. Investors have become nearly conditioned to expect the central bank to swoop in as a hero by slashing interest rates during downturns.

But the Fed may have less freedom to act this time around because the conditions are so much different. That's cheifly because inflation is higher at the moment than the Fed would like. And while lower interest rates can goose the economy, they can also put upward pressure on inflation. Expectations for inflation are already swinging higher because of Trump’s tariffs, which would likely raise prices for anything imported.

“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” JPMorgan CEO Jamie Dimon, one of the most influential executives on Wall Street, wrote in his annual letter to shareholders Monday. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”

In the bond market, Treasury yields rallied Monday to recover some of their sharp drops from earlier weeks. Some of the big move may have been because of reduced expectations for cuts to interest rates by the Fed. Some analysts also said it could be due to investors outside of the United States wanting to pare their U.S. investments.

The yield on the 10-year Treasury jumped to 4.14% from 4.01% late Friday.

Earlier in the day, the S&P 500 briefly fell more than 20% below its record set less than two months ago. If it finishes a day below that bar, it would be a big enough drop that Wall Street has a name for it. A “bear market” signifies a downturn that’s moved beyond a run-of-the-mill 10% drop, which happens every year or so, and has graduated into something more vicious.

The S&P 500, which sits at the heart of many investors’ 401(k) accounts, is coming off its worst week since COVID began crashing the global economy in March 2020.

Kurtenbach reported from Bangkok. McHugh reported from Frankfurt, Germany. Associated Press writers Ayaka McGill, Paul Harloff, Matt Ott and Jiang Junzhe also contributed.

An electronic display shows financial information on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Federico DeMarco works on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Chris Lagana works on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

Traders work on the options floor at the New York Stock Exchange in New York, Monday, April 7, 2025. (AP Photo/Seth Wenig)

While a stock exchange trader sits in front of his monitors on the trading floor of the Frankfurt Stock Exchange, Germany, the display board with the Dax curve shows a value of less than 20,000 points. (Arne Dedert/dpa via AP)

While a stock exchange trader sits in front of his monitors on the trading floor of the Frankfurt Stock Exchange, Germany, the display board with the Dax curve shows a value of less than 20,000 points. (Arne Dedert/dpa via AP)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 7, 2025. (AP Photo/Ahn Young-joon)

An electronic stock board shows that Nikkei stock average dropped over 2,900 Japanese yen in Tokyo Monday, April 7, 2025. (Kyodo News via AP)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won, top right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 7, 2025. (AP Photo/Ahn Young-joon)

A person walks past an electronic stock board in Tokyo Monday, April 7, 2025. (Kyodo News via AP)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, April 7, 2025. (AP Photo/Ahn Young-joon)

US President Donald Trump appears on a television screen at the stock market in Frankfurt, Germany, Thursday, April 3, 2025. (AP Photo/Michael Probst)

A screen displays financial news as traders work on the floor at the New York Stock Exchange in New York, Thursday, April 3, 2025. (AP Photo/Seth Wenig)