Dow closes more than 800 points down on recession fears
All 3 major stock indexes take big hits as 10-year Treasury note falls below 2-year rate
All three major stock indexes plummeted Wednesday as investors fretted about concerns of a potential recession, erasing gains from a day earlier.
The Dow sunk more than 800 points while the S&P 500 shed 2.9%, and the Nasdaq dipped 3%.
The 10-year Treasury note fell below the 2-year yield, jittering investors about a possible downturn in the economy. The odd yield curve inversion is seen as an indicator of economic recessions.
Investors had already been grappling with an ongoing trade war with the world's top two economies -- U.S. and China -- that has sent shockwaves through global markets.
Tuesday's gains, made after U.S. President Donald Trump announced he would delay 10% tariffs on $300 billion of Chinese imports, and completely nix others, were erased following the curve inversion.
Washington and Beijing's trade war has stoked concerns about a slowdown in the global economy, with a deal to end the dispute nowhere in sight.
Trump continued to insist the U.S. is "winning, big time" amid the dour economic showing, insisting "China is not our problem," while pointing the finger at the Federal Reserve.
"Raised too much & too fast. Now too slow to cut," Trump fumed on Twitter.
"Spread is way too much as other countries say THANK YOU to clueless Jay Powell and the Federal Reserve. Germany, and many others, are playing the game! CRAZY INVERTED YIELD CURVE! We should easily be reaping big Rewards & Gains, but the Fed is holding us back. We will Win!"
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