Stocks Opened Sharply Lower Following Yield-curve Recession Warning
-- Wednesday, August 14, 2019, 9:49 --
U.S. stocks opened sharply lower on Wednesday, pressured after the main measure of the U.S. Treasury yield curve temporarily inverted, sending a recession-warning signal. The Dow Jones Industrial Average lately fell 440.00 points, or 1.67%, to 25,839.91. The S&P 500 dropped 47.94 points, or 1.64%, to 2,878.38. The Nasdaq Composite was down 148.31 points, or 1.85%, to 7,868.05.
Oil futures traded lower on Wednesday ahead of an official tally of crude inventories and as investors digested a round of downbeat economic data from China and Europe. West Texas Intermediate crude for September delivery fell $1.15, or 2%, to $55.95 a barrel. October Brent crude declined 85 cents, or 1.4%, to $60.45 a barrel.
The yield on the 2-year U.S. Treasury note rose above that of the 10-year U.S. Treasury just after 6 a.m. Et Wednesday, marking the first inversion of this closely watched portion of the yield curve in more than a decade.