Stocks close lower as recession and trade worries rise
Stocks ended lower Tuesday, erasing solid gains from earlier in the day, as a recession indicator from the bond market worsened and fears around the U.S.-China trade war increased.
The Dow closed 120 points lower, reversing a morning rally that sent the 30-stock index up more than 150 points. The S&P 500 and Nasdaq shed about 0.3% amid losses in Netflix, Nvidia and T-Mobile.
The spread between the 10-year Treasury yield and the 2-year rate fell to negative 5 basis points, its lowest level since 2007. This is called a yield curve inversion. Experts fear it because in the past it has preceded recessionary periods. The 3-month Treasury bill rate also traded higher than the 30-year bond yield.
“The primary thing is yields are going down and going down with some acceleration,” said Art Cashin, the director of floor operations at UBS.
Bank shares -- including Bank of America, Citigroup and J.P. Morgan Chase -- fell broadly.
Sentiment was also dampened after Hu Xijin, editor-in-chief of the Global Times in China, tweeted that China is “putting so much emphasis on trade talks,” adding that “it’s more and more difficult for the US to press China to make concessions” as China’s economy becomes increasingly driven by its domestic growth. China announced measures aimed at boosting consumption, including potentially removing car-buying restrictions.
https://www.msn.com/en-us/money/markets/stocks-close-lower-as-recession-and-trade-worries-rise/ar-AAGjA2U?li=BBnbfcN
Winning Trump style.
= new reply since forum marked as read
