U.S. stocks plunge following Huawei arrest


Stocks are plunging again as the arrest of a senior Chinese technology executive threatened to worsen trade tensions between Beijing and Washington.

A steep drop in Boeing, which would suffer in an extended trade battle, helped drag the Dow Jones Industrial Average down more than 600 points Thursday morning, rebounding slightly in the early afternoon.

News broke Wednesday that Meng Wanzhou, the chief financial officer and deputy chair of the board for the Chinese tech giant Huawei, was arrested in Vancouver Saturday.

Traders shovelled money into bonds, a signal they see weakness in the economy ahead.

The price of oil fell 3.8 per cent as OPEC leaders gathered to discuss production cuts, which traders suspect may not reverse a plunge in crude.

The Dow was down 502 points in early afternoon trading, or 2.15 per cent, to 24,524.39

Canada’s main stock exchange, the S&P/TSX composite index was down 329.45 points or 2.17 per cent to 14,853.19. 

The S&P 500 index lost 44.28 points, or 1.64 per cent, to 2,655.78.

The Nasdaq dropped 83.35 points, or 1.16 per cent, to 7,075.08.

The yield on the 10-year Treasury fell to 2.84 per cent.


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