NEW YORK March 23 – Wall Street shares sold sharply yesterday, with all three major US stock indices posting their largest one-day percent decline since January 3, when weak US and European factory data led to an inversion of US treasury dividends, burning fears of a global economic downturn.
Capping five tumultuous days of trading, S&P 500, Dow and Nasdaq were all down the week.
A weaker than expected reading of US plant activity in March, along with similar Dour reports from Europe and Japan, helped send US Treasury in an inversion, with the spread between the yields of three-month state tax b accidents exceeding the 1[ads1]0-year notes For the first time since 2007.
An indication of near-term risk, and seen by many as a potential deterioration of the recession, the reverse government bond yield curve seemed to confirm the investor's fear of a global downturn in economic growth.
"What is happening to some extent with the yield curve has been exaggerated," said Bernard Baumohl, chief executive and finance director of the Economic Outlook group at Princeton. "I wouldn't jump to the conclusion that a recession is imminent."
But Baumohl warned against complacency.
"There are real clouds forming on the horizon. The question is how dark the clouds will be and will they trigger a recessionary storm."
Earlier this week, the US Federal Reserve ended its two-day monetary policy meeting with a statement which does not estimate any further interest rates in 2019 on signs of economic softness, a shady shift that surprised the market.
Interest-sensitive financial firms fell 2.8 percent, which had the worst week since the end of December sales.
The Dow Jones Industrial Average dropped 460.19 points, or 1.77 percent, to 25,502.32, S & P 500 lost 54.17 points, or 1.90 percent to 2800.71, and Nasdaq Composite fell 196, 29 points, or 2.5 percent to 7,642.67.
Of the 11 major sectors in the S & P 500, anything but the supply sector ended the season in the red.
The CBOE volatility index, a measure of investor fear, jumped most in two months.
Nike Inc shares pushed 6.6 percent after sportswear company's North American
Retail Tiffany Inc. said expected earnings growth would resume in the second half of the year, confirming its 2019 targets to ship the stock up 3.1 percent.
Electric car manufacturer Tesla Inc. 3.5 percent after a Cowen research note that saw the soft US demand for Model 3 for the release of the company's cheaper model in the second quarter.
Boeing Co continued to fall and lost 2.8 percent as Indonesian airline Garuda canceled a $ 6 billion order for its 737 MAX plans, citing customers' fears in the wake of Ethiopian Airlines crash.
Netflix Inc fell 4.5 percent across Apple Inc.'s launch of a rival streaming service on Monday.
Falling Problems to Promote Them on the NYSE with a 3.69 to 1 ratio; On Nasdaq, a 490-to-1 ratio favored decliners.
S & P 500 posted 54 new 52-week highs and 5 new downs; Nasdaq Composite recorded 25 new heights and 87 new downs.
Volume on US stock exchanges was 8.66 billion shares, compared to the 7.7 billion average in the last 20 trading days. – Reuters