US Stocks Recover as Bessent Calls China Trade Situation Unsustainable
US equities experienced gains as the Dow Jones Industrial Average and Nasdaq Composite reached intraday highs. This surge followed a report by Bloomberg citing Treasury Secretary Scott Bessent, who indicated that the US/China trade war is unsustainable, although negotiations have not commenced.
- The Dow increased by over 1,000 points during the session
- The Nasdaq rose by up to 3.3%
- Investors are eager for progress on trade agreements
The International Monetary Fund has revised its global growth forecast down to 2.8% for 2025 and 2026, citing "epistemic uncertainty and policy unpredictability." The current effective tariff rate in the US exceeds levels seen during the Great Depression.