Wall Street slides as recession fears grow By Reuters

© Reuters. Traders work on the floor at the New York Stock Exchange (NYSE) in New York

By Medha Singh

(Reuters) – Wall Street main indexes slid 1.5% on Wednesday, as a closely watched U.S. bond market indicator pointed to a renewed risk of recession following poor economic data from Germany and China.

Yields on the two-year Treasury notes rose above the 10-year yield for the first time since 2007, a metric widely viewed as a classic recession signal. [US/]

The interest-rate sensitive bank index slipped 2.50% and the broader financial sector fell 1.95% in response.

Slumping exports sent Germany’s economy into reverse in the second quarter, while Chinese industrial output growth cooled to a more than 17-year low in July, putting the focus back on a bruising U.S.-China trade war and its impact on global growth.

The downbeat mood followed a rally in Wall Street’s main indexes on Tuesday thanks to the Trump administration’s decision to delay tariffs on some Chinese imports.

“It’s almost as if global investors either don’t buy the tariff delay as a sign of real progress in the U.S.-China trade war or have been too consumed by further evidence of global economic weakness to care,” BMO Capital Markets strategist Stephen Gallo said.

At 9:52 a.m. ET, the 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 was down 140.86 points, or 1.76%, at 7,875.50.

The high-growth technology sector was the hardest hit. Shares of Apple Inc (NASDAQ:) were down 1.74% after boosting markets a day earlier with a 4% rise.

Chipmakers were also down, with the Philadelphia chip index slumping 2.09%.

The biggest decliner on the was Macy’s Inc, down 17.2%, after the department store operator cut its full-year profit forecast as it discounted heavily to clear excess spring season inventory.

Rivals Target Corp (NYSE:) and Nordstrom Inc (NYSE:) slipped 3.4% and 9.8%, respectively.

Declining issues outnumbered advancers for a 5.40-to-1 ratio on the NYSE and for 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.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.