Stock market losses mounted on Thursday, as worries about the world’s economic outlook, heightened tension between the United States and China and another tumble in energy prices left few areas unscathed.
On Wall Street, the S&P 500 stock index dropped more than 2.5 percent, falling into negative territory for the year, after news that a prominent Chinese technology executive was arrested in Canada at the request of the United States. Markets in Europe and Asia also faced steep declines.
Investors in the United States have already been rattled about the prospect that a trade war with China would begin to impact the economy at home. Over the weekend, the two countries declared a truce in the trade war, promising to halt any further tariffs on imports as they negotiated a trade deal, but doubts and confusion over the nature of their agreement emerged almost immediately.
News of the arrest of the chief financial officer for the Chinese tech giant Huawei, Meng Wanzhou, generated fresh uncertainty about the truce. It also raised the possibility of a new phase in the trade war, one that could pose substantial risks for United States tech companies that have driven major gains for American investors in recent years.
“This is going to continue to be a headwind at a time when people are worried about global growth,” said Dan Clifton, a head of policy research with analysis firm Strategas.