The Dow Jones Industrial Average as trading at session lows on Wednesday morning as investors anxieties about a recession in the U.S. and elsewhere hurt buying appetite. The Dow was off 607 points, or 2.3%, at 25,669, the S&P 500 index was down 2.3% at 2,858, while the Nasdaq Composite Index was down 2.6% at 7,809. Part of the impetus for stocks heading sharply lower was an inversion of the 2-year Treasury and the 10-year Treasury notes , which took place at about 6 a.m. Eastern Time. The spread between the 2-year note and the 10-year note temporarily fell to a negative 1 basis point. An inversion of this measure has often preceded an economic downturn. Investors say its powers as a recession indicator comes from its ability to reflect when tight monetary policy is capping growth and inflationary pressures. A yield curve inversion along the 2-year and 10-year spread has come before the last seven recessions. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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