Stocks Sink to 8-Month Low Over Fears of Escalating Trade War

(Bloomberg)—The sell-off in global stocks deepened, leaving U.S. shares mired in the steepest two-day slide since February and European equities at a two-year low as concern mounted that the rate of global economic growth has peaked. Oil slid as OPEC ministers met in Vienna.

The S&P 500 has tumbled more than 5 percent in two sessions, while the Dow Jones Industrial Average shed almost 1,500 points on bets that the trade truce between China and the U.S. won’t last after the arrest of Huawei’s chief financial officer. Financial shares led the drop, as Treasury yields fell to the lowest since August with traders starting to doubt the Federal Reserve will raise rates even once next year as economic growth falters.

Oil continued to be a drag on financial markets, with West Texas Intermediate back below $51 a barrel as OPEC ministers seek a deal to cut output. Energy producers in the S&P 500 sank more than 3 percent, and emerging-market equities plunged.

Some of the main market moves:

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The KBW bank index is down more than 8 percent in two days to the lowest since September 2017. All 30 Dow components dropped, with Boeing off 6.1 percent and Apple down 3 percent. Energy producers tumbled 3 percent as curde slumped to $51 a barrel. The front end of the yield curve continued to lead Treasuries higher, helped by a large block trade in 2-year futures“The biggest qualm is the trade war escalating and this is haunting the markets,” said Naeem Aslam, chief market analyst at Think Markets U.K. in London, in an email. “It is arduous to find bulls in the market and it seems

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