US stocks erase Monday losses after Bessent calls China trade situation ‘unsustainable’

While Treasury Secretary Scott Bessent expects de-escalation in the future, he said negotiations have not yet started

article-image

Secretary Treasury Scott Bessent | Maxim Elramsisy/Shutterstock modified by Blockworks

share


This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.


US equities are once again trading on a dream. 

The Dow Jones Industrial Average and Nasdaq Composite indexes hit intraday highs Tuesday after Bloomberg — citing unnamed sources — reported that Treasury Secretary Scott Bessent said the US/China trade war is unsustainable. While he expects de-escalation in the future, he said negotiations have not yet started. 

Bessent apparently made the comment at an investor event in Washington closed to the public and media. 

The Dow had gained more than 1,000 points midway through Tuesday’s session while the Nasdaq Composite rose as much as 3.3%. 

The moves once again show just how desperate investors are for signs that the White House is inking deals with trade partners. As of 2 pm ET, the Trump administration had not commented on Bessent’s reported remarks. 

In a report published Tuesday, the International Monetary Fund lowered its global growth forecast to 2.8% (from 3%) in 2025 and 2026. Analysts cited “epistemic uncertainty and policy unpredictability,” adding that the US effective tariff rate is now higher than it was during the Great Depression.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (11).png

Research

Union’s technical design brings measured improvements to crosschain interoperability. By combining a consensus-verified hub with novel constructs like state lenses and ZK proofs for client updates, Union achieves an interoperability protocol that is highly performant, trust-minimized, and scalable.

article-image

“Diverse opportunities emerge alongside macroeconomic tailwinds,” zondacrypto CEO says

article-image

Commerce plans transparent, tamper‑resistant data distribution via blockchain for economic metrics

by Blockworks /
article-image

It’s unclear whether the celeb ever knew about the account made using his name

article-image

Sharps Technology raised $400 million in PIPE offering

article-image

Offchain Labs’ Tandem will work exclusively with Succinct on a zkVM

article-image

Fundstrat’s chief investment officer may be the apex bull