From CNBC: 2025-04-02 18:42:00

Treasury Secretary Scott Bessent addressed the recent stock market sell-off, attributing it to a decline in major technology stocks rather than Trump administration policies. The emergence of Chinese AI startup DeepSeek and its competitive models fueled doubts about U.S. tech companies’ AI investments, leading to a tech stock rout.

Bessent highlighted that the Magnificent 7 tech stocks, including Apple and Amazon, drastically dropped, pulling the Nasdaq Composite down by 13% from its peak. Despite concerns about Trump’s tariffs impacting the market, Bessent downplayed their effect, emphasizing that the recent sell-off was mainly due to tech-specific factors, not broader economic issues.

President Trump’s signing of an aggressive reciprocal tariff policy caused a significant stock market downturn, with S&P 500 futures falling nearly 4% and the Dow Jones Industrial Average dropping 1,100 points. Bessent remains optimistic, stating that the market sell-off is primarily influenced by specific tech-related events, rather than broader economic conditions.

Read more: Treasury Secretary Bessent says market woes are more about tech stock sell-off than Trump’s tariffs