Stocks recovered in a late rally Thursday after nearly wiping out all gains for the year, capping a tumultuous trading day that reflected investors’ persistent…
Stocks recovered in a late rally Thursday after nearly wiping out all gains for the year, capping a tumultuous trading day that reflected investors’ persistent jitters over the U. S. trade war with China and fears of a weakening global economy.
The Dow Jones Industrial Average fell more than 1,500 points in two days before paring Thursday’s losses to 79 points, or 0.32 percent, to close at 24,948. The S&P 500 was down 0.15 percent, while the tech-heavy Nasdaq finished the day up 29.83 points, or 0.42 percent.
Analysts blamed a combination of worries over President Trump’s trade war with China, low oil prices, concerns about the British parliament’s ability to approve a Brexit deal and the arrest of a Chinese high-tech executive wanted by the U. S.
The president thought he had eased the concerns about tariffs last weekend, when he reached a handshake deal with Chinese President Xi Jinping for a 90-day pause in the trade war to implement specific agreements on certain exports such as oil and agricultural products.
But investors’ worries appeared to accelerate Thursday, even after Beijing belatedly gave an upbeat confirmation of the unwritten agreement with the U. S.
The arrest of Meng Wanzhou, chief financial officer of the Chinese telecom giant Huawei, reinforced concerns about the difficulties of the U. S. and China reaching a comprehensive trade deal. Mr. Trump has accused China of stealing cutting-edge technology from the U. S.
“You have got the news overnight of the arrest of the CFO of Huawei that I think is throwing a real monkey wrench into the positive optimism that surrounded the weekend meeting,” said Katie Nixon, chief investment officer for the wealth management division of Northern Trust in Chicago.
