Stocks fall hard on elevated trade risks.
U.S. stocks declined sharply on Thursday, as investors returned from a national day of mourning to fresh trade fears involving the U.S., Canada and a Chinese telecommunications giant.
All of Wall Street’s major indices fell hard on Thursday. The Dow Jones Industrial Average (NYSEARCA:DIA) declined 78.05 points, or 0.3%, to 24,949.02.
The much broader S&P 500 Index (NYSEARCA:SPY) declined 0.2% to finish at 2,695.94. Seven of 11 primary sectors contributed to the decline, with energy and financials leading the declines.
Energy shares were pressured by falling oil prices after the Organization of the Petroleum Exporting Countries (OPEC) reached a tentative deal to curb output, but delayed specifying by how much.
Meanwhile, the technology-focused Nasdaq Composite Index (NYSEARCA:QQQ) broke higher ground in the final hour, adding 0.4% to 7,188.26.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) surged again on Thursday. The fear gauge climbed double-digits percentage-wise, crossing 25.00 for the first time since October. It would eventually settle at 21.57, gaining 4% to close at 24.16. VIX surged more than 25% on Tuesday as share prices fell anew.
Huawei’s CFO Meng Wanzhou was arrested in Canada Wednesday and faces extradition to the United States on suspicion that the company was doing business with Iran, which violates U.S. sanctions. According to The Wall Street Journal, the U.S. Justice Department has been investigating whether Huawei was violating sanctions as far back as April.
The Final Word: The latest skid has pushed the major indices back into negative territory for the year. The volatility gauge points to further turbulence ahead of the holiday season, a period that is generally known for its bullish nature.