Bessent: AI, Not MAGA, Behind Market Plunge

U.S. Treasury Secretary Scott Bessent attributed the recent stock market plunge to China's AI breakthrough, DeepSeek, rather than President Trump's economic policies. Speaking on the Tucker Carlson Podcast, Bessent indicated that the decline is more a 'Mag 7' issue, referring to high-performing tech stocks like Apple and Tesla, rather than a 'MAGA' issue. Despite a 10% drop in U.S. stocks following Trump's aggressive global tariff announcement, Bessent believes the market is reacting to a reassessment of tech valuations due to AI developments. The S&P 500 and Nasdaq 100 are experiencing their worst week since March 2020, influenced by fears of tariffs and inflation. Bessent's remarks highlight a correction in Wall Street's pricing of AI dominance, suggesting a broader transformation in the U.S. economy. This perspective contrasts with analysts who blame Trump's tariff policies for the market downturn.