ForexTV Small Business Resources -Forextv.com
The Dow Jones Industrial Average was trading at session lows on Wednesday morning as investor anxieties about a recession in the U.S. and elsewhere hurt buying. The Dow was off 772 points, or 2.9%, at 25,508, the S&P 500 index was down 2.9% at 2,843, while the Nasdaq Composite Index was down 3% at 7,772. 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.
Latest posts by Market Watch (see all)
- The Margin: How to grow your Twitter following from 400 to 75,000 in one weekend: Get into a feud with Mike Huckabee - December 9, 2019
- As Fed chairman, Paul Volcker made everyone mad - December 9, 2019
- Market Snapshot: Stocks lower, still within striking distance of records as trade deadline looms - December 9, 2019
