News of the arrest of Huawei CFO Meng Wanzhou in Canada serves as a fresh reminder that the United States and China remain in a trade war, despite the ceasefire reached last weekend in Argentina.
Dow plummeting as much as 785 points on Thursday before the index staged a huge comeback.
The Dow closed the day down just 79 points.
The Nasdaq eked out a small gain, recovering from trade war fears that had knocked the index down as much as 2.4%.
The S&P 500 similarly rebounded, ending the day down just 0.2%.
Huawei arrest sparks selling
The arrest of Meng sent shudders through global markets early in the day. Hong Kong’s Hang Seng plunged 2.5% overnight, while European stock markets declined sharply as well. Germany’s DAX nearly closed in a bear market, down nearly 20% from its January closing high.
Companies like Apple (AAPL) and Boeing (BA) that have significant exposure to China fell sharply before rebounding. Other trade-related stocks like Broadcom (AVGO) and Harley-Davidson (HOG) were also under pressure.