Global stocks fell and safe-haven assets rose as investors worried about US-China tensions ahead of a trade summit in late October.
Mixed comments from Washington, with Bessent blaming Beijing but insisting talks will continue, added to market uncertainty.
Asian and European tech stocks were the main victims, while gold neared record highs and US bond yields fell.
The dollar strengthened, the yen edged up, while bitcoin fell more than 3.5%. Markets are now pricing in a strong chance that the Fed will accelerate rate cuts to support the economy.
Brent crude also fell after an OPEC report showed supply-demand balance next year, easing concerns about global energy shortages.
