US stocks drop as Bessent confirms no China trade talks, Trump says US doesn’t ‘have to sign’ deals
US stocks took a hit on Tuesday as Treasury Secretary Scott Bessent revealed that trade talks with China have not yet begun. President Trump’s statement that the US is not obligated to sign any trade deals further added to the market’s uncertainty.
The Dow Jones Industrial Average dropped by 1%, while the S&P 500 and Nasdaq also saw declines of 0.8% and 0.9% respectively. This news came as a surprise to many, given Trump’s previous claims of ongoing negotiations with China.
Despite the setback, there was a glimmer of hope when Bessent mentioned that the US has received promising trade offers from other countries. He expressed optimism that trade deals with major partners could be finalized by the end of the year.
However, Trump’s comments during a meeting with Canadian Prime Minister Mark Carney reignited concerns. He emphasized that the US holds the upper hand in trade negotiations and doesn’t feel pressured to make concessions.
Market volatility continued throughout the day, fueled by conflicting trade data and companies suspending their annual forecasts. The US trade deficit reached a record high in March, with imports surging ahead of impending tariffs. Major companies like Ford and Mattel announced uncertainties due to economic instability.
This ongoing uncertainty has led investors to question the stability of the stock market, with some turning to alternative investments like gold. As trade tensions persist and economic forecasts remain uncertain, the market is likely to see further fluctuations.
