U.S. Treasury Secretary Scott Bessent is moving the market like a pendulum; here’s what he said that sent stocks surging before paring gains

US Treasury Secretary Scott Bessent has become the focus of market whims after his remarks during an event conducted by JPMorgan Chase led to a fleeting stock rally, only to reverse the gains later in the day, as per a report.

What Did Scott Bessent Say About the US-China Trade War?

According to Bloomberg, Bessent indicated that the current US-China trade war, with tariffs rising up to 145%, is unsustainable and may de-escalate soon.

After his comments, the S&P 500 rose to 2.7% from 2% on Tuesday afternoon but then that faded to 1.7% later, as per Investor's Business Daily (IBD) report.

Misinterpretation Possibility

However, there is no transcript of Bessent remarks, so there can be a possibility that his message was misinterpreted, according to IBD. Although, Bessent has previously said that the United States has the upper hand over China due to its massive bilateral trade deficit, meaning China's tariffs cover a much smaller portion of US-produced goods, as per the report.

Donald Trump's Optimism on China Deal

While, this is not the first instance of the Trump administration indicating a desire to reach an agreement with China. Just last week, US president Donald Trump had said, "I think we are going to make a very good deal with China," quoted IBD. Trump even posted on his social media site Truth Social, "China wants to make a deal. They just don't know how quite to go about it," as quoted in the report.

FAQs

How did Bessent’s words impact the stock market?
Bessent’s comments caused a surge in the S&P 500, but the rally eventually lost momentum.

Can Bessent’s words be misinterpreted?
Yes, without an official transcript, there’s a possibility that his remarks were not fully understood, which might have led to market overreaction.