The worldwide drop was set off by news that the chief financial officer of the Chinese telecom giant Huawei, Meng Wanzhou, had been arrested in Canada at the request of the United States. Her detention on Saturday, the same day President Trump and President Xi Jinping of China agreed to a trade truce, could further complicate efforts to resolve a dispute that has weighed on financial markets in recent weeks.
In recent days, skepticism had already grown about prospects for that 90-day truce, as Trump administration aides played down the chances of striking a broad deal and Mr. Trump threatened further tariffs on imports from China, even calling himself a “Tariff Man” in messages on Twitter.
But the arrest of Ms. Meng, the daughter of Huawei’s founder, threatened to open a riskier new chapter in a fight that investors increasingly see as a threat to financial markets and the economy.
“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 the analysis firm Strategas.
Whiplash on Wall Street as Tension About Global Economy Mounts
Sebastion Cooper 