The Dow plunged more than 750 points before noon Thursday after the arrest of a Chinese tech executive in Canada threatened to further exacerbate trade tensions between the U.S. and China.
The significant slide followed a similar sell-off on global markets and tumbling oil prices. Hong Kong’s Hang Seng plunged 2.5% overnight, while European stock markets declined sharply as well.
It comes two days after a 799-point drop Tuesday that overshadowed positive comments on trade from Beijing and Washington. Trading was halted on Wednesday for a national day of mourning during the funeral of President George H.W. Bush.
Canadian authorities picked up Meng Wanzhou,the chief financial officer of China’s Huawei Technologies, on Dec. 1 for possible extradition to the U.S.
Meng, the daughter of the company’s founder Ren Zhengfei, was arrested in Vancouver, British Columbia, and a bail hearing is scheduled for Friday, according to Canadian authorities. China has demanded her immediate release.
A Huawei spokesperson told CNN that Meng was detained by Canadian authorities on behalf of the United States while she was transferring flights in Vancouver. Huawei said she faces unspecified charges in the Eastern District of New York.
In April, the Wall Street Journal first reported that the Justice Department was investigating whether Huawei violated sanctions against Iran.
The arrest came just days after President Trump met with Chinese President Xi Jinping and the pair agreed to work on easing their escalating trade dispute.
However, Trump rattled markets by tweeting Tuesday that he’s “a Tariff Man.”
“When people or countries come in to raid the great wealth of our Nation, I want them to pay for doing so,” he added.
Economists fear further levies on imports could hit American companies and consumers in the wallet.
Meanwhile, OPEC countries gathered in Vienna Thursday to find a way to support the falling price of oil. Analysts predicted the cartel and some key allies, like Russia, would agree to cut production by at least 1 million barrels per day. OPEC heavyweight Saudi Arabia indicated it was in favor of such a cut.