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Wed Aug 14, 2019, 12:49 PM

Stocks tumble after bond market flashes recession warning [View all]

Stocks fell sharply Wednesday, giving back Tuesday’s solid gains, after the U.S. bond market flashed a troubling signal about the U.S. economy.

The Dow was down more than 600 points, while the S&P 500 slumped 2.4% and the Nasdaq sank 2.8%.

The yield on the benchmark 10-year Treasury note Wednesday broke below the 2-year rate, an odd bond market phenomenon that has been a reliable indicator for economic recessions. Investors, worried about the state of the economy, rushed to long-term safe haven assets, pushing the yield on the benchmark 30-year Treasury bond to a new record low on Wednesday.

Bank stocks led the declines as it gets tougher for the group to make a profit lending money in such an environment. Bank of America and Citigroup both fell more than 3%, while J.P. Morgan also dropped 3%. The SPDR S&P Regional Banking ETF is down 2.65%.


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Reply Stocks tumble after bond market flashes recession warning [View all]
Yo_Mama_Been_Loggin Aug 14 OP
SWBTATTReg Aug 14 #1
empedocles Aug 14 #2
Sneederbunk Aug 14 #3
maxsolomon Aug 14 #4
lpbk2713 Aug 14 #5
Johnny2X2X Aug 14 #6