U.S. stocks sank Thursday, with the Dow Jones Industrial Average shedding more than a 1,000 points in two consecutive sessions, after the arrest of a Huawei executive reignited trade worries.
How are the benchmarks trading?
The Dow Jones Industrial Average DJIA, -1.19% declined 372 points, or 1.5%, to 24,655, though the index was down by as many as 785 points at the low. The index of blue chips shed 800 points on Tuesday, as fears about heightened trade tensions sparked a selloff.
Thursday’s losses have put the Dow and the S&P into the red for 2018 while the Nasdaq clung to gains on the year.
The U.S. markets were closed Wednesday to mark a national day of mourning after the Friday death of former President George H.W. Bush.
What’s driving the market?
Investors have been rattled by news that the Canadian authorities had arrested Meng Wanzhou, the chief financial officer of Huawei Technologies, at the request of U.S. authorities for allegedly violating sanctions against Iran. The arrest, which was made on Dec. 1, comes as the U.S. has taken several steps to restrict the Chinese technology giant, trying to persuade international allies to do the same.
In a sign of how rattled investors are, stock-index futures dropped so precipitously Thursday that the Chicago Mercantile Exchange triggered circuit breakers to avoid worse losses. Those futures spiked down to 2,659, a drop of 1.9% before the CME stopped trading briefly to try to calm the market, said Chris Weston, head of research at Pepperstone.
FactSet S&P 500 futures tumble sharply at Thursday’s reopen
China authorities reacted furiously,