U.S. stocks declined on Thursday, with the benchmark indexes recording their worst session since July 31, as Apple tumbled on glitches tied to its new smartphone and as investors considered a proposal in Russia that would let its courts seize foreign assets.
“That would signal a threat from the Kremlin that the Russian-U.S.-Europe conflict economically might take a turn for the worse. They are signaling that unless concessions or negotiations take place, we’re prepared to do this,” said Jim Russell, senior equity strategist for US Bank Wealth Management. “It’s a turn for the worse, it’s an unwelcome signaling from the Kremlin that this, a limitation on capital flows to Russia, is a possibility,” Russell said.
Reuters reported the draft law, submitted to Russia’s parliament on Wednesday by a pro-Kremlin deputy, would also allow state compensation for those whose assets were taken in foreign jurisdictions. The proposed measure comes after Italy froze luxury properties owned by a longtime friend of President Vladimir Putin, Bloomberg reported.