US Treasury Secretary Scott Bessent believes that the fall in the stock market has more to do with the emergence of the Chinese software DeepSeek than with the economic policies of President Donald Trump.
The New York Post reports this, Ukrinform reports.
“To everyone who cares that all this fall in the market is connected with the economical policy of the president, I can say that the fall in the market began with the shock of the Chinese company DeepSeek about the creation of the piece intelligence,” Bessent said in an interview with American blogger Tucker Carlson.
According to the minister, those who watch the stock market, “we have a Mag 7 problem, not a MAGA problem,” bearing in mind the shares of the Magnificent 7 – a group of the largest companies on the US stock market, which includes Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla.
US stocks fell by nearly 10% in two days after Trump announced his new foreign policy as aggressive, according to analysts and investors. Market analysts and large investors attribute this decline to Trump's aggressive push for tariffs, which most economists and the head of the Federal Reserve think could provoke inflation and harm economic growth.
Nowadays, this means that the shares have effectively taken a hit today, when the Chinese startup DeepSeek launched a HI-assistant, which, in other words, has less data and costs twice as much, less Essential services. This led to a record one-day spending of perhaps 600 billion dollars in shares of the Nvidia chip manufacturer, one of the Mag 7.
Suddenly, the situation stabilized and until the middle of the year, the underlying S&P 500 index again hit a record high level. At the end of the day, stocks began to fall again, following a rally that showed pessimism about the economic outlook and fears that Trump's plan to introduce a new fiscal plan would lead to rising inflation.
Since December 19, the S&P has lost as much as 14%, and the value of the American stock market has decreased by as much as 10 trillion dollars.
Tim Bessent also confirmed that the Trump administration is maintaining a “strong dollar” policy and, having rejected the assertions of analysts about the introduction of new mitts, is an attempt to weaken the dollar.
The US Treasury Secretary said that there is no need to listen to anyone talk about the dollar besides Trump and Bessent.
As reported by Ukrinform, US President Donald Trump officially voted against introducing large-scale tariffs against trading partners of the United States, calling it “Day of Liberation” for America. As a result, the US government is introducing a basic tariff of 10% on all goods from other countries. In addition, additional regulations will be introduced for specific powers. Zokrem, for China – on par with 34%, the European Union – 20%, Japan – 24%, India – 26%, New Korea – 25%, Great Britain – 10%, Israel – 17%.
Photo: Tom Williams/CQ Roll Call