FILE PHOTO: Traders work on the floor on the New York Stock Exchange (NYSE) in New York, US, August 13 , 2019. REUTERS / Eduardo Munoz
August 14, 2019
By Medha Singh
(Reuters) – Wall Street's index dipped 1.5% on Wednesday, while a closely watched indicator of the bond market the US has pointed to a renewed risk of recession. following poor economic data from Germany and China.
Two-year Treasury notes rose above the 10-year yield for the first time since 2007, a metric widely viewed as a classic signal of recession. [US/]
The interest rate index fell 2.50% and the broader financial sector fell 1.95% in response. -Overed in July, the focus has been on a fierce US-China trade war and its impact on global growth.
The heartbeat follows a rally on Wall Street's major indexes Tuesday thanks to the Trump administration's decision to delay tariffs on some Chinese imports.
"Almost as if global investors either did not buy tariff delays as a sign of genuine growth in the US-China trade war or were over-consumed by further evidence of global economic weakness in care, "said BMO Capital Markets Strategist Stephen Gallo.
At 9:52 am ET, the Dow Jones Industrial Average dropped 406.73 points, or 1.55%, to 25,873.18, the S&P 500 down 44.61 points, or 1.52%, to 2,881.71. The Nasdaq Composite dropped 140.86 points, or 1.76%, to 7,875.50. Shares of Apple Inc decreased 1.74% after boosting markets a day earlier with a 4% rise.
Chipmakers were down, too, with the Philadelphia chip index falling 2.09%. Inc, down 17.2%, after the department store operator cut the entire annual revenue forecast because it was reduced to heavy to clear excess spring inventory.
Rivals Target Corp and Nordstrom Inc fell 3.4% and 9.8%, respectively. Reducing issues beyond advocates for the 5.40-to-1 ratio on the NYSE and for the 5.99-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and 35 new lows, while the Nasdaq recorded eight new highs and 126 new lows.
(Reporting by Medha Singh and Arjun Panchadar in Bengaluru; Editing by Anil D'Silva)