US Markets Slump On China Trade Fears

US stocks suffered their biggest losses in more than two weeks on Thursday as slashed European growth forecasts and warnings on the Sino-US trade dispute sent Wall Street into the red.

The blue-chip Dow Jones Industrial Average fell 0.9 percent, closing d at 25,170.

The broader S&P 500 also lost 0.9 percent, finishing at 2,706. The tech-heavy Nasdaq fell furthest, slipping 1.2 percent to settle at 7,288.

With three weeks remaining in a trade truce between Washington and Beijing, the White House said on Thursday there remained a "sizeable distance" between the two sides.

US duties on US$200 billion in Chinese imports are due to rise sharply after March 1, a prospect dreaded by markets.

President Donald Trump – who had announced last week he expected to seal a final deal on trade at a meeting with his Chinese counterpart Xi Jinping – said the meeting would not take place before tariffs were due to rise. (AFP)