US. stocks rose on Wednesday as a well-known predictor of an upcoming recession has entered the mix. At one point, Dow was more than 700 points.
Investors are also worried about weakening economic information in Europe and Asia.
The yield curve makes a recession warning. The spread between the US two-year and ten-year returns on Wednesday was negative for the first time since 2007.
Such a development has occurred before every US recession in the last 50 years, sometimes by as much as 24 months.
|In: DJI||DOW JONES AVERAGES|| 25571
||-708.81||– 2.70%  SP500||S&P 500||2851.92||-74.40||-2.54%|
|I: COMP||NASDAQ COMPOSITE INDEX||7786.799298|| 1965] -2.86%  Oil was also drawn to recession problems with US crude, which fell by 5 percent to $ 54.23. |
There are global market problems as the German economy declined by 0.1 percent in the second quarter of the previous three-month period as global trade conflicts and problems in the automotive industry outweighed Europe's largest economy.
The major European markets ended the day d drastically lower with German Dax and French CAC losing more than 2 percent each.
The news was similar in Asia as China's factory production, retail spending and investment weakened in July, suggesting that the world's second-largest economy faces downward pressure on growth
China's factory production rose 4.8 percent compared to a year earlier, a a marked decline from 6.3 per cent from June. Retail sales growth fell to 7.6 percent from the previous month's 9.8 percent.
Japan's Nikkei increased almost 1 percent, Hong Kong's Hang Seng was less than 0.1 percent and the Shanghai Composite rose 0.4 percent.
U.S. stock withdraws from Tuesday's rally, spearheaded by the US Commerce Representative's office, saying it would delay tariffs on some Chinese products, including popular consumer goods, until December 15.
Some other products were completely removed, including some types of fish and highchairs.
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Macy's reported a 48 percent decrease in quarterly earnings and lowered its forecast for full-year adjusted earnings on Wednesday, sending shares tumbling. Rival retailers Kohl & # 39; s, Target and Nordstrom also fell.