Dow tanks 800 points in worst day of 2019 after bond market sends recession warning

0
7
views
FxPro Daily Economic Events
FxPro Daily Economic Events

Stocks plunged on Wednesday, giving back Tuesday’s solid gains, after the U.S. bond market flashed a troubling signal about the U.S. economy. The Dow Jones Industrial Average dropped 800.49 points or 3.05% to 2,5479.42, its biggest point decline of the year and fourth largest point drop of all time. The S&P 500 fell 85.72 points or 2.93% to 2,840.6, while Nasdaq Composite declined 3.02% to 7,773.94. The Dow has given up the entire rebound from a sell-off earlier in the month.

The yield on the benchmark 10-year Treasury note on Wednesday broke below the 2-year rate, an odd bond market phenomenon that has been a reliable indicator of 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 fell 4.69% and 5.28% respectively, while J.P. Morgan also dropped 4.15%. The S&P 500 Financials Sector dipped into correction territory on an intraday basis.

Dow tanks 800 points in worst day of 2019 after bond market sends recession warning, CNBC, Aug 14

This Review is presented by FxPro.

For all Articles related to Fxpro please click here

OPEN AN ACCOUNT WITH FXPRO