8/14/2019, 4:52 PM (Source: TeleTrader)
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Dow plummets 500 points on recession fears

United States markets extended losses on Wednesday with the Dow Jones dropping over 500 points after a brief yield curve inversion between the 10-year and 2-year Treasuries earlier in the day. The 10-year note yield dipped below the levels of the 2-year Treasury yield, which is seen as a reliable indicator of an impending recession, while the yield on the 30-year bond hit an all-time low.

The Dow Jones plunged 1.91% or 501 points at 10:54 am ET. Financials and pharma stocks suffered the largest losses as JP Morgan Chase, Goldman Sachs, Dow and Walgreens Boots Alliance all lost over 3%.

The Nasdaq 100 tumbled 2.21% at 10:58 am ET. Mylan was the worst performer as the pharmaceutical company's shares plummeted 7.63% at 11:01 am ET.

The S&P 500 slid 1.97% at 10:58 am ET with Macy's diving 15.93% at 11:03 am ET after the retailer reported worse-than-expected second-quarter results and lowered its profit outlook for 2019. The company's CEO Jeff Gennette attributed the downgrade in outlook to the fact that consumers will have "no appetite" for price increases caused by President Donald Trump's new tariffs on imports from China.

Breaking the News / NP