Wall Street is slipping as the fear of recession grows
FILE PHOTO: Traders work on floor at New York Stock Exchange (NYSE) in New York, USA, August 13, 2019 REUTERS / Eduardo Munoz [19659003] 14. August 2019
By Medha Singh
(Reuters) – Wall Street main indices fell by 1.5% on Wednesday as a closely monitored US bond market indicator pointed to a renewed risk of recession following poor economic data from Germany and China.
Returns on the two-year Treasury rose above the 1[ads1]0-year rate for the first time since 2007, a calculation that was seen as a classic recession signal. [US/]
The interest rate sensitive bank index fell 2.50% and the broader financial sector fell 1.95% in response.
Falling exports sent Germany's economy into reverse in the second quarter, while Chinese industrial production growth cooled to more than 17-year lows in July, putting the focus back on a blue-American trade war and its impact on global growth.
The downturn followed a meeting of Wall Street's main indices on Tuesday thanks to the Trump administration's decision to postpone tariffs on some Chinese imports.
"It's almost as if global investors are not buying the tariff delay as a sign of real progress in the US-China trade war or have been consumed by further evidence of global economic weakness to care," said BMO Capital Markets strategist Stephen Gallo.
Kl. At 9:52 in the ET, the Dow Jones Industrial Average was down 406.73 points, or 1.55%, at 25,873.18, the S&P 500 was down 44.61 points, or 1.52%, at 2.881.71. The Nasdaq Composite was down 140.86 points, or 1.76%, at 7,875.50.
The high-growth technology sector was hit hardest. Shares of Apple Inc fell 1.74% after strengthening the markets one day earlier, up 4%.
Chipmakers were down as well, with the Philadelphia chip index falling 2.09%.
The biggest bouncer on the S&P 500 index was Macy's Inc, down 17.2%, after the department store operator cut its full-year surplus as it reduced sharply to remove the surplus of its spring season inventory.
Rivals Target Corp and Nordstrom Inc sank 3.4% and 9.8% respectively.
Declining questions outperformed the progress of a 5.40-to-1 ratio on the NYSE and a 5.99-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and 35 new lows, while the Nasdaq recorded eight new highs and 126 new lows.
(Reporting by Medha Singh and Arjun Panchadar in Bengaluru; Editing by Anil D & # 39; Silva)
