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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsStocks tumble after bond market flashes recession warning
Stocks fell sharply Wednesday, giving back Tuesdays 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%.
https://www.msn.com/en-us/money/markets/stocks-tumble-after-bond-market-flashes-recession-warning/ar-AAFzdHm?li=BBnb7Kz
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SWBTATTReg
(22,187 posts)empedocles
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(14,315 posts)maxsolomon
(33,432 posts)Daddy makes the mess, Mommy cleans it up.
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lpbk2713
(42,770 posts)Johnny2X2X
(19,229 posts)There was a run of bad news today after several months of mostly bad economic news. This is being driven by the looming and now probably unavoidable global recession Trump created.