US STOCKS-Wall Street swamped by fresh U.S.-China trade worries
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* Huawei CFO arrest reignites fears of U.S.-China tradetensions
* Energy shares tumble as oil stumbles after OPEC meeting
* Financials drop along with U.S. bond yields
* Indexes drop: Dow 1.83 pct, S&P 500 1.46 pct, Nasdaq 0.74pct (Updates with late-afternoon trading)
By Lewis Krauskopf
Dec 6 (Reuters) - U.S. stocks fell on Thursday as the arrestof a top Chinese technology executive stirred fears of freshtensions between the United States and China over trade,although Wall Street's main indexes reduced steep losses fromearlier in the session.
Stocks resumed their slide after a rare midweek U.S. tradingholiday, while a drop in oil prices also hit the energy sector .SPNY , which was the worst-performing major S&P 500 group.
The chief financial officer of telecom equipment makerHuawei Technologies HWT.UL was arrested in Canada and facesextradition to the United States. urn:newsml:reuters.com:*:nL1N1YA1YR
The arrest comes as investor enthusiasm had already fadedfollowing a truce reached over the weekend in talks between theUnited States and China, which had prompted some hope aboutresolving differences over trade that have clouded the stockmarket's outlook this year.
"Clearly, the Huawei CFO arrest was the individual catalystthat caused today's moves lower," said Mark Hackett, chief ofinvestment research at Nationwide.
"It clearly gives voice to the bears who are saying, 'Thereare no real details around this China deal, and we don't haveany specific promises by the Chinese,'" Hackett said.
With Thursday's declines, the S&P 500 slipped back intonegative territory for 2018.
The Dow Jones Industrial Average .DJI fell 458.31 points,or 1.83 percent, to 24,568.76, the S&P 500 .SPX lost 39.35points, or 1.46 percent, to 2,660.71 and the Nasdaq Composite .IXIC dropped 53.04 points, or 0.74 percent, to 7,105.39.
However, by afternoon the indexes had climbed off their lowsfrom earlier in the day.
Stocks had fallen to near levels seen in October andNovember, Hackett said.
"The bounce off of that low is encouraging," he said.
Aside from trade, concerns over bond yields and interestrates have pressured the stock market in recent days.
U.S. Treasury yields tumbled, with 10-year yields hittingthree-month lows as traders scaled back expectations on thenumber of rate hikes the Federal Reserve would implement amidweakening economic data and market volatility. urn:newsml:reuters.com:*:nL1N1YB0QO
Financial shares .SPSY , which are sensitive to bond yieldswings, fell 3.2 percent and were the biggest declining majorgroup following energy.
The energy sector slumped 3.3 percent. Oil fell after OPECand allied exporting countries ended a meeting withoutannouncing a decision to cut crude output. urn:newsml:reuters.com:*:nL4N1YB17O
Losses for the S&P 500 were mitigated by gains for AmazonAMZN.O , NetflixNFLX.O and some of the other technology andinternet stocks that have been hit particularly hard during themarket's pullback in recent months.
The major indexes fell more than 3 percent each on Tuesday.Markets were closed on Wednesday for a day of mourning forformer President George H.W. Bush, who died on Friday. urn:newsml:reuters.com:*:nL1N1Y920X
Declining issues outnumbered advancing ones on the NYSE by a3.25-to-1 ratio; on Nasdaq, a 2.28-to-1 ratio favored decliners.
The S&P 500 posted 4 new 52-week highs and 70 new lows; theNasdaq Composite recorded 8 new highs and 351 new lows. (Additional reporting by Shreyashi Sanyal in Bengaluru; Editingby Sriraj Kalluvila and Dan Grebler) ((firstname.lastname@example.org; 646-223-6082; ReutersMessaging: email@example.com,Twitter: @LKrauskopf))
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