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

Hilton Park Lane

Tues - Wed, November 10 - 11, 2026

DAS London is a two-day summit at the Hilton Park Lane in London featuring conversations between the builders, allocators, and policy makers who are shaping the trajectory of the digital asset ecosystem in the UK, Europe, and North America.

Marina Bay Sands Singapore

Wednesday, October 07, 2026

DAS Asia is a a single-day summit at Marina Bay Sands Singapore featuring conversations between the builders, investors, and global leaders are shaping the trajectory of the digital asset ecosystem in Asia & North America.

recent research

Hyperliquid Purple (4).jpg

Research

HIP-3 has successfully scaled market creation on Hyperliquid, but it has not yet created a sustainable competitive deployer layer. Growth mode, USDH depreciation, high auction costs, and the 500K HYPE stake have made the model increasingly difficult for non-TradeXYZ deployers, leaving market creation concentrated around one clear outlier. We look at why deployer participation has slowed, what that means for HIP-3’s long-term design, and how tiered exchanges or temporary auction-fee relief could make smaller and more niche markets economically viable.

Newsletter

The Breakdown

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

Blockworks Research

Unlock crypto's most powerful research platform.

Our research packs a punch and gives you actionable takeaways for each topic.

SubscribeGet in touch

Blockworks Inc.

133 W 19th St., New York, NY 10011

Blockworks Network

NewsPodcastsNewslettersEventsRoundtablesAnalytics