The Treasury Secretary, Scott Bessent, talks to journalists outside the West wing after doing a television interview on the northern lawn of the White House on March 13, 2025 in Washington, DC.
Andrew Harnik | Getty images
The secretary of the Treasury, Scott Bessent, said on Wednesday that the sale on the stock market is more due to a lively withdrawal of the most important technological actions instead of protectionist policies from the Trump administration.
“I try to be secretary to the treasure, not a market commentator. What I would emphasize is that especially the Nasdaq culminated on the day of Deepseek, so it’s a Mag 7 problem, not a Maga problem,” said Bessent on Wednesday evening of Bloomberg TV.
Bessent referred to the Chinese AI startup Deepseek, whose new language models sparked a rout in American technological actions at the end of January. The emergence of highly competitive models of Deepseek and potentially much cheaper has attracted doubts about the billions that large American technological companies spend on AI.
The so -called magnificent 7 actions – Apple, Amazon, Tesla, Alphabet, Microsoft, Meta and Nvidia – began to sell radically, by pulling the NASDAQ composite in charge of technology in the correction territory. The technology reference is down approximately 13% compared to its record reached on December 16.
However, the secretary minimized the impact of the steep prices of President Donald Trump, who attracted many investors who have devoid and fueled fears of a reactive of inflation, of slower economic growth and even a recession. Many investors blamed the deployment of the price for briefly led the S&P 500 to the correction territory of its file reached at the end of February. Wall Street defines a correction as a decrease of 10% compared to a recent summit.
S&P 500, YTD
Trump signed an aggressive policy of “reciprocal prices” in the White House on Wednesday evening, slapping tasks of at least 10% and even higher for some countries. The shares launched a huge sale on the stock market overnight, the term contracts on S&P 500 decreasing by almost 4% and the industrial average of Dow Jones from Blue-Chip lost 1,100 points. The losses will probably be but the S&P 500 return to the correction territory during the session on Thursday.
“It will be good if we set up the best economic conditions,” said Bessent in a separate interview on Fox on Wednesday evening. “If you go back, the stock market has reached a peak on the (deep) announcement of Chinese AI. So, a large part of what we have seen was just an idiosyncratic technological sale.”
