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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 about 737 points or 2.6%, while the S&P 500 fell 2.5% and Nasdaq Compositedeclined 2.9%. The Dow fell to a new low for August, giving up the entire rebound from a sell-off earlier in the month.
The article goes on to state the following:
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.
LIVE: Watch the Dow trade in real-time. Stocks are plunging today after the U.S. bond market flashed a troubling signal about the U.S. economy. https://t.co/ayTSG7IPbJ
— CNBC (@CNBC) August 14, 2019
— CNBC Now (@CNBCnow) August 14, 2019
Why did the Dow drop over 700 points this morning & why is #TrumpRecession trending? Because the yield on the 10-year Treasury Note broke below the 2-year rate. This inverted yield curve has historically signaled an approaching recession.#WednesdayWisdom https://t.co/iSszaJeSmZ
— Ted Lieu (@tedlieu) August 14, 2019
Dow sinks 730 points Wednesday afternoon as flashing recession signal rattles stock market https://t.co/rCBIVbjURA
— MarketWatch (@MarketWatch) August 14, 2019
— Bloomberg (@business) August 14, 2019
Dow falls more than 700 points after troubling indicator of an impending recession. pic.twitter.com/fHqmUY7DQL
— MSNBC (@MSNBC) August 14, 2019
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