U.S. stocks tumbled at open Wednesday after the inverted yield curve, one of the most reliable indicators of a recession, sparked a new wave of investor fears, erasing the short-lived bump from Tuesday’s trade easing.
For the first time since 2007, the yields on short-term U.S. bonds eclipsed those of long-term bonds. This phenomenon, which suggests investors’ faith in the economy is faltering, has preceded every recession in the last 50 years. Recessions typically come within 18 to 24 months after the yield curve inverts, according to research from Credit Suisse. “The 3-month Treasury bill to 10-year note curve has been inverted for weeks now and with the inversion of the 2-year to 10-year curve. The stars are aligned across the curve that the economy is headed for a big fall,” said Chris Rupkey, chief financial economist at MUFG Union Bank. “The yield curves are all crying timber that a recession is almost a reality, and investors are tripping over themselves to get out of the way.”
The Dow Jones industrial average slumped nearly 400 points at open Wednesday, a day after it notched its best performance in two months. The Standard & Poor’s 500 index was down more than 1.4 percent and the tech-heavy Nasdaq was down more than 1.6 percent. Bank stocks slumped off the news. Bank of America and Citigroup saw their shares sink more than 3 percent and JP Morgan’s shares fell 2.6 percent. Gold, a safe-haven for investors, rose. And the influx of investors scrambling for safety pushed U.S. 30-year Treasury yields to their lowest level ever.
Darkening skies overseas gave investors more to worry about. Germany announced Wednesday that its economy had shrunk, blaming the drop-off on the fallout from the U.S.-China trade war and the looming threat of a hard Brexit. The European Stoxx 600 benchmark was down nearly 6 percent in midday trading. China reported more signs of a weakening economy Wednesday, with high unemployment and lower production and investment markers, fanning the flames of fears about a broader global slowdown as the protracted trade conflict appears to be stalling some of the world’s most powerful economies.
Read more: https://www.washingtonpost.com/busin...ning-surfaces/
Germany's screwups are "Trump's Fault".... NOT ANGELA MERKEL's. Got it.
TRUMP WILL TAKE FORTY STATES...UNLESS THE SAME IDIOTS WHO BROUGHT US THE 2020 DUNCE-O-CRAT IOWA CLUSTERFUCK CONTINUE THEIR SEDITIOUS ACTIVITIES...THEN HE WILL WIN EVEN MORE ..UNLESS THE RED CHINESE AND DNC COLLUDE, USE A PANDEMIC, AND THEN THE DEMOCRATS VIOLATE ARTICLE II OF THE CONSTITUTION, TO FACILLITATE MILLIONS OF ILLEGAL, UNVETTED, MAIL IN BALLOTS IN THE DARK OF NIGHT..
De Oppresso Liber
Cancel 2020.2 (08-14-2019)
Putin is getting what he paid Trump for.
Best money he ever spent.
C'MON MAN!!!!
Cancel 2020.2 (08-14-2019)
evince (08-14-2019), reagansghost (08-14-2019), Trumpet (08-14-2019)
they say he spent a few hundred grand to set-up that IRA in St Petersburg, wasn't even trying to get Trump elected, just trying to hurt Clinton because he hates her for past actions as Sec of State
now the US politically on its knees, you're right, it's like he hit the lotto twice
Cancel 2020.2 (08-14-2019)
Cancel 2020.2 (08-14-2019)
the left is rooting for failure, they break teir fingers in the haste to post these threads.
"Oh look, the country is failing"
It actually makes them feel good, which is precisely why not only will trump and his good economy win in 2020, but the house is coming back to red
This just In::: Trump indicted for living in liberals heads and not paying RENT
C̶N̶N̶ SNN.... Shithole News Network
Trump Is Coming back to a White House Near you
Nomad (08-14-2019)
Cancel 2020.2 (08-14-2019)
Cancel 2020.2 (08-14-2019)
Trumpet (08-14-2019)
Cancel 2020.2 (08-14-2019)
Trumpet (08-14-2019)
Cancel 2020.2 (08-14-2019)
Trumpet (08-14-2019)
Cancel 2020.2 (08-14-2019)
Trumpet (08-14-2019)
Cancel 2020.2 (08-14-2019)
Cancel 2020.2 (08-14-2019)
Trump is just too fucking stupid to understand that China can torpedo him, come election day.
Cancel 2020.2 (08-14-2019)
reagansghost (08-14-2019)
Cancel 2020.2 (08-14-2019)
Trumpet (08-14-2019)
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