Dow and broader U.S. stock market turned lower in afternoon trading on Tuesday,
as demand for haven investments continued to rise in the face of renewed China
Dow Turns Lower; S&P 500, Nasdaq Follow
All of Wall Street’s major indexes pivoted lower in the afternoon session, diverging from a solid pre-market for Dow futures. After rising by as much as 152 points, the Dow Jones Industrial Average eventually fell 75.39 points, or 0.29%, to 25,823.44.
The broad S&P 500 Index of large-cap stocks slipped 0.22% to 2,872.17, with losses mainly concentrated in financials and energy companies.
The technology-focused Nasdaq Composite Index edged down 0.26% to 7,833.35
Key Yield Curve Remains Inverted
and U.S. Treasurys advanced on Tuesday, as demand for haven assets continued to
rise in the wake of renewed U.S.-China trade tensions.
Rising bond prices pushed the benchmark 10-year U.S. Treasury yield back below 1.5%. By comparison, the yield on the 2-year Treasury note is around 1.52%.
This so-called inverted yield curve, which materialized earlier this month for the first time in over a decade, is a strong recession signal for the bond markets.
When the yield curve inverts, a recession usually follows 22 months later – at least, that’s been the case the last five times the 2-year yield has risen above the 10-year yield.
The U.S. economy is projected to grow 2.3% annually in the third quarter, according to the Atlanta Fed’s GDP tracker.