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Dow plummets more than 700 points when it comes to fear of the recession

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.

Ticker Security Last Change % Chg
-708.81 – 2.70% [19659016] SP500 S&P 500 2851.92 -74.40 -2.54%
I: COMP NASDAQ COMPOSITE INDEX 7786.799298 1965] -2.86% [19659025] 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.


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.

Ticker Security Last Change % Chg
M MACY & # 39; S INC. 16.41 -2.96 -15.26%
KSS KOHL & # 39; S CORP. 45.30 -5.37 -10.60%
JWN NORDSTROM 26.16 -2.96] -10.16% [19659025] Technical shares including Apple also took a hit. Chipmakers joined the sale.

Ticker Security Last Change % Chg
AAPL APPLE INC. 203.62 -5.35 -2.56%
INTC INTEL CORPORATION 45,80 -1.04 -2.22%
XLNX XILINX INC. 103.20 -3.23 -3.03%
MU MICRON TECHNOLOGY INC. 41.92 -2.25 -5.09%

On Wednesday, the Department of Labor said import prices rose 0.2 percent last month as a rebound in the cost of oil products offset price declines for capital goods and motor vehicles.

The Associated Press contributed to this article

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