Bessent's New Comments Worsen Mood on Wall Street

After falling into correction territory last week—with the benchmark S&P 500 off 10% from its earlier highs—stocks were poised to start the new week with modest declines. Dow futures were down more than 130 points, and USA Today reports that comments from Treasury Secretary Scott Bessent over the weekend are a factor. In short, he did not predict a quick turnaround:

• "I've been in the investment business for 35 years, and I can tell you that corrections are healthy, they are normal," Bessent said Sunday on Meet The Press, per NBC News. "What's not healthy is straight up. You get these euphoric markets. That's how you get a financial crisis."

• Bessent also declined to rule out a recession (echoing comments from President Trump). "You know that there are no guarantees," he said. "I can predict that we are putting in robust policies that will be durable," and that could lead to an "adjustment" as the nation weans itself from "massive government spending." Bessent previously said the economy needed a "detox" from such spending. In the long run, he added, "I'm not worried about the markets."
• NPR takes note of the rhetorical shift at the White House over the stock market. When markets soared to record highs after Trump's win, he boasted about it. "The S&P 500 index has broken above 6,000 points for the first time ever—never even close," Trump said at the time. After the S&P's more recent plunge, he told Fox News, "You can't really watch the stock market."

(More Scott Bessent stories.)