• The Dow Jones Industrial Average fell 327.23 points, or 1.3 percent, to 25,379.45, the S&P 500 lost 40.43 points, or 1.4 percent, to 2,768.78 and the Nasdaq Composite dropped 157.56 points, or 2.1 percent, to 7,485.14.
U.S. stocks fell more than 1 percent on Thursday as the European Commission issued a warning regarding Italy’s budget and concerns mounted over the possibility of strained relations between the United States and Saudi Arabia, further denting investors’ appetite for risk amid global trade tensions and rising interest rates.
Wall Street’s major indexes pared early losses in morning trading but reversed course to fall further as European markets closed. Italian bond yields jumped after the European Commission deemed the country’s 2019 budget draft to be in breach of EU rules.
U.S. stocks declined further after U.S. Treasury Secretary Steven Mnuchin pulled out of an investor conference in Saudi Arabia as the White House awaited the outcome of investigations into the disappearance of Saudi journalist Jamal Khashoggi.
Mnuchin’s decision sparked worries of potential strain in U.S.-Saudi relations, especially if Saudi leaders were found to have been involved in Khashoggi’s disappearance. Investors raised concern that if Saudi Arabia were sanctioned, it could restrict oil supply and prompt a rise in energy prices.
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• Stocks in Asia were lower on Friday morning following an overnight tumble on Wall Street. Investors are keeping an eye on China's GDP data due Friday morning, which is expected to show growth slipped in the world's second largest economy.
In Japan, the Nikkei 225 fell by 1.5 percent in early trade, while the Topix declined by 1.22 percent.
Over in South Korea, the Kospi also slipped by 0.88 percent minutes after the market open.
Reference: Reuters, CNBC
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