This is a segment from the Forward Guidance newsletter. To read full editions, subscribe . US equities are once again trading on a dream. The Dow Jones Industrial Average and Nasdaq Composite indexes hit intraday highs Tuesday after Bloomberg — citing unnamed sources — reported that Treasury Secretary Scott Bessent said the US/China trade war is unsustainable. While he expects de-escalation in the future, he said negotiations have not yet started. Bessent apparently made the comment at an investor event in Washington closed to the public and media. The Dow had gained more than 1,000 points midway through Tuesday’s session while the Nasdaq Composite rose as much as 3.3%. The moves once again show just how desperate investors are for signs that the White House is inking deals with trade partners. As of 2 pm ET, the Trump administration had not commented on Bessent’s reported remarks. In a report published Tuesday, the International Monetary Fund lowered its global growth forecast to 2.8% (from 3%) in 2025 and 2026. Analysts cited “epistemic uncertainty and policy unpredictability,” adding that the US effective tariff rate is now higher than it was during the Great Depression. Get the news in your inbox. Explore Blockworks newsletters: Blockworks Daily : Unpacking crypto and the markets. Empire : Crypto news and analysis to start your day. Forward Guidance : The intersection of crypto, macro and policy. 0xResearch : Alpha directly in your inbox. Lightspeed : All things Solana. The Drop : Apps, games, memes and more. Supply Shock : Bitcoin, bitcoin, bitcoin.
