The Dow Jones Industrial Average sank 800 points in a broad sell-off on Wall Street Wednesday after the bond market flashed a warning sign for the first time since 2007 that the economy could be headed for a recession.
The 10-year Treasury yield briefly dropped below the two-year, an ominous signal that has predicted past recessions. Investors have been plowing money into long-term U.S. government bonds for months, sending yields sharply lower, as they anticipate slower economic growth.
The S&P 500 fell 85.72 points, or 2.9%, to 2,840.60.
The Dow sank 800.49 points, or 3%, to 25,479.42.
The Nasdaq composite lost 242.42 points, or 3%, to 7,773.94.
The Russell 2000 index of smaller company stocks slid 43.05 points, or 2.8%, to 1,467.52.
For the week:
The S&P 500 is down 78.05 points, or 2.7%.
The Dow is down 808.02 points, or 3.1%.
The Nasdaq is down 185.20 points, or 2.3%.
The Russell 2000 is down 45.52 points, or 3%.
For the year:
The S&P 500 is up 333.75 points, or 13.3%.
The Dow is up 2,151.96 points, or 9.2%.
The Nasdaq is up 1,138.66 points, or 17.2%.
The Russell 2000 is up 118.96 points, or 8.8%.