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Wall Street slips as fears of recession increase



  Traders working on the New York Stock Exchange (NYSE) floor in New York
FILE PHOTO: Traders working on the New York Stock Exchange (NYSE) floor in New York, USA, August 13, 2019 REUTERS / Eduardo Munoz [19659003] fourteenth August 2019

By Medha Singh

(Reuters) – Wall Street's main indexes fell 1.5% on Wednesday as a closely watched US bond market indicator pointed to a renewed recession risk following poor economic data from Germany and China.

Yields on two-year Treasury bills rose above 1

0-year yields for the first time since 2007, a metric that is widely regarded as a classic recession signal. [US/]

The interest-sensitive bank index fell 2.50% and the financial sector as a whole fell 1.95%.

The decline in exports left the German economy in a reverse direction in the second quarter, while Chinese industrial production slowed to over 17-year-low in July, with the focus again on a bloody trade war between the US and China and its impact on global growth.

The subdued sentiment followed a rally in the main Wall Street indexes on Tuesday, thanks to the Trump government's decision to delay tariffs on some Chinese imports.

"It's almost as if global investors either did not buy the tariff lag as a sign of real progress in the US-China trade war or were over-stressed by further signs of global economic weakness said Stephen Gallo, strategist at BMO Capital Markets.

At 9:52 ET, the Dow Jones Industrial Average fell 406.73 points or 1.55% to 25,873.18, the S & P 500 fell 44.61 points or 1.52% to 2,881.71 The Nasdaq Composite declined 140.86 points or 1.76% at 7,875.50

The fastest-growing technology sector was the hardest hit, with shares of Apple Inc. giving out 1.74% after markets had risen 4% the day before.

Also, chip makers slipped, with the Philadelphia chip index slipping 2.09%.

The largest decline in the S & P 500's index was that of Macy's Inc. fell by 17.2% after the department store operator lowered its full-year earnings guidance as it had made a significant discount to eliminate excess inventories in the spring.

Rivals Target Corp and Nordstrom Inc. fell 3.4% and 9.8%, respectively.

There has been more progress on declining emissions than the NYSE (5.40: 1) and the Nasdaq (5.99: 1).

The S & P index recorded eight new highs in 52 weeks and 35 new lows, while the Nasdaq recorded eight new highs and 126 new lows.

(Reporting by Medha Singh and Arjun Panchadar in Bengaluru, edited by Anil D & # 39; Silva)


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