Dow drops 800 points as Wall Street suffers worst day of year on recession fears

[orangecrush]

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ECONOMY
Dow drops 800 points as Wall Street suffers worst day of year on recession fears
The market selloff was a response to the yield curve inversion in government bonds, triggered by ongoing geopolitical turmoil and sluggish economic growth worldwide.

Aug. 14, 2019, 9:36 AM EDT / Updated Aug. 14, 2019, 4:04 PM EDT
By Lucy Bayly
Wall Street took a battering on Wednesday, suffering its worst day so far this year after movements in the bond market signaled the sharpest indication yet of an approaching recession.

The Dow Jones Industrial Average, which had already shed 400 points at the opening bell, spent the day in freefall before closing with a decline of 800 points, a drop of over 3 percent. The S&P 500 closed down 2.93 percent, and the Nasdaq posted a decline of just over 3 percent.


The market selloff was the result of an inverted yield curve in government bonds, when the yield on the benchmark 10-year Treasury note falls below the 2-year rate — a phenomenon that has preceded every recession for the past 50 years.


https://www.nbcnews.com/business/economy/wall-street-slides-inverted-yield-curve-rings-recession-alarm-bells-n1042211


Mission accomplished by Trump for Putin

[TheBlackAdder]

1. It's Clobberin' Time!

[orangecrush]

6. Went through this with Bush

People never learn.

[spanone]

2. As usual with this 'president' the buck stops somewhere else....fed chair powell

‘CRAZY INVERTED YIELD CURVE!’ — Trump rips ‘clueless Jay Powell’ and the Fed as the market slides

https://www.cnbc.com/2019/08/14/trump-hammers-clueless-jay-powell-rails-against-crazy-inverted-yield-curve.html

[orangecrush]

3. Trump's brain is inverted

[Doodley]

4. A recession is unavoidable. The question is when.

[orangecrush]

5. Soon

Very soon.

[Doodley]

12. Soon enough to destroy Trump? That is uncertain.

[orangecrush]

13. Trump is already destroyed

Imo.

[BeyondGeography]

7. So much winning

[orangecrush]

8. Starting a trade war with China

Stable genius.

[BeyondGeography]

10. We'll show our largest creditor who's the boss

Yessir.

[Liberal In Texas]

9. This is why I got the retirement assets out of the stock market after he got elected.

I didn't think it was going to take almost 3 years but the volatility hasn't been a healthy sign.
Probably could have stayed in and made some returns, but didn't need the anxiety.

[Loge23]

11. Incompetence has consequences

We can't be surprised as the economy finally teeters and falls under the watch of an unprecedented band of idiots.
Everything is a toy for this moron #IPOTUS, everything has immediate consequences. China trade issues bothering him? He'll simply pull a lever like he's ordering his butler to bring him a cheeseburger and impose tariffs on a massive trade partner.
Interest rates too high for the king of debt? He'll tweet some garbage about his vast knowledge of absolutely nothing and sit back and watch the markets move - usually downward, like today.
Navarro, a noted fool, is on today saying that the IPOTUS's rescission of additional tariffs on China is "a Christmas present" to America - this while Navarro blames the Fed for their interest rate policy. With interest rates already low, the Fed will have little wiggle room when the inevitable recession does come.
We can't be surprised after watching W bungle the job. The current IPOTUS is W times negative 100. He's the Great Pariah and he'll now preside over the end of the American recovery and perhaps the end of America as we know it.

You know who's going to look really, really bad in all of this?
The entire Senate and the entire House. Thanks for NOTHING!

[Gothmog]

14. Here is a great comparison of stock market performance under each POTUS

Link to tweet

[RainCaster]

15. Reuters is giving the Marmalade Shart Cannon full credit for this

Reuters says that this "has Trumps fingerprints all over it"

NEW YORK (Reuters Breakingviews) - A U.S. recession warning from financial markets has Donald Trump’s fingerprints all over it. A key bond market metric turned negative for the first time since 2007 on Wednesday, sending stocks tumbling. Other economic indicators in the United States and abroad are deteriorating. The common thread linking these is the president’s trade war.

The U.S. economy started the year with a good head of steam. Growth hit a three-year high of 2.9% in 2018, corporate coffers were swelling from the tax cuts the president signed into law a year earlier, and unemployment stood at the lowest level in nearly a half century. Sluggish growth overseas and a negative market reaction to the Federal Reserve’s December rate hike suggested some fragility, but virtually nobody was predicting a recession before 2021.

The White House has since escalated trade tensions, with Trump twice in the past three months announcing tariff increases affecting some $500 billion of imports from China.

As a result the yield on the Treasury’s benchmark 10-year note has since early May fallen by nearly a percentage point, to 1.59% Wednesday afternoon. Earlier in the day it briefly traded below the return on the Treasury’s 2-year note, something investors haven’t seen since June 2007. That spooked equity markets, with the S&P 500 Index down nearly 3% in early afternoon trading.