Dow dives almost 800 points on fears of economic slowdown

Compartir

The drop in U.S. stocks also came amid a signal from bond markets that has traditionally been a precursor to a recession. Add Stock Market as an interest to stay up to date on the latest Stock Market news, video, and analysis from ABC News.

Wall Street closed weaker yesterday.

The S&P 500 .SPX posted its biggest single-day percentage drop in about two months, giving back some gains from Monday and a week earlier, when the benchmark index tallied its largest weekly percentage gain in almost seven years. Japan's Nikkei 225 index gave up 2.4 per cent and the Kospi in South Korea lost 0.8 per cent. Hong Kong's Hang Seng added 0.3 per cent. Germany's DAX lost 1.1 per cent, while France's CAC 40 dropped 0.8 per cent.

WALL STREET: Investor confidence in the U.S. -China agreement faltered after a series of confusing and conflicting comments from President Donald Trump and some senior officials. Advanced Micro Devices dropped 10.9 percent to $21.12, while Micron Technology lost 7.9 percent to $36.88.

The Dow Jones Industrial Average lost 799.36 points, or 3.1%.

TAKING A BITE: Apple fell 2.1 percent to $180.94 after the consumer electronics giant was downgraded by HSBC analysts, citing the possibility that iPhone volume and value growth may moderate due to a saturated mobile phone market. Tech companies, banks and exporters including Boeing and Caterpillar all declined.

Kentucky health officials urges people to get vaccinated
These remedies can help you recover quicker, and can potentially prevent you from being hospitalized with flu complications. The Centers for Disease Control and Prevention recommends that everyone age 6 months and older get a flu vaccine each year.

Trump announced via a weekend tweet that China would "start purchasing agricultural product immediately", and that "China has agreed to reduce and remove tariffs on cars coming into China from the U.S". -China trade war and a possible economic slowdown. That made the weekend agreement seem even less likely to produce a long-lasting settlement.

Meanwhile, markets also got a bit of a jolt Tuesday from remarks by John Williams, president of the Fed's NY regional bank. During a briefing with reporters, John Williams said given his outlook for strong economic growth, he expects "further gradual increases in interest rates will best sponsor a sustained economic expansion".

The jitters helped drive demand for government bonds Tuesday, pushing prices higher. The yield on the 10-year Treasury fell to 2.92 per cent. The yield on five-year Treasury bonds has fallen below the yield on a three-year bond for two days running, meaning that United States investors are being paid more to hold government debt that matures in three years than in five years. -China trade fight. CBS News business analyst Jill Schlesinger reports.

"Today's move feels like the market is a scorned lover". An inverted yield curve has also preceded each recession of the last 60 years, though sometimes by more than a year.

Large banks were among the big losers, with JPMorgan Chase shedding 4.4 percent, Bank of American losing 5.7 percent and Citigroup 5.6 percent. The contract rose 30 cents on Tuesday to close at $53.25. It gained 39 cents the previous session to $62.08.

CURRENCIES: The dollar weakened to 112.91 yen from 113.69 yen late Monday. The euro rose to $1.1349 from $1.1343.

Compartir