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Stocks decline to 3 month decline, bonds rally, as recession fear rise with trade war



Shares fell sharply on Wednesday, when the Dow Jones Industrial Average has seen its lowest levels since January 29, and the S & P 500 index fell to its lowest level since March 8, when the US-China trade war is creating fear of a recession.

All 11 sectors of the S&P 500 index have been withdrawn and the communications and energy stocks led to the decline.

US ten-year government bond yields fell to the lowest level since September 2016, while crude oil prices fell to their lowest level since March, while US dollar and gold rose.

After a statement by Special Counsel Robert Mueller, stocks fell to their lowest levels by the day to trim losses, but it was unclear if anything Mueller said affected the market by traders. Mueller passed the responsibility for further actions against President Trump to Congress. He reiterated that his report, first published in April, did not liberate or accuse Mr Trump of preventing justice.

Ticker Security Last Change % Chg
I: DJI [1
9659011] DOW JONES AVERAGES
25126.41 -221.36 -0.87%
] SP500 S & P 500 2783.02 -19.37 -0.69%
I: COMP NASDAQ COMPOSITE INDEX 7547.309451 -60.04 -0.79%

Investors see the rise in bond yields as a sign. Global economic growth slows as trade wars begin to disrupt supply lines and raise business and consumer prices, with the full impact of US not yet felt tariffs.

US and China have introduced billions of dollars of each other's imports since the beginning of 2018, undermining business confidence and potentially disturbing complex global production chains.

With long-term bond yields now lower than short-term interest rates should be of great concern to the economy and investors, Bankrate, senior economics analyst Mark Hamrick, told FOX Business & # 39; Neil Cavuto

. "It should worry us because it has a pretty good track record telling us that a recession is down the road," he said Wednesday.

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In the recent movement, Chinese state media this week increased the opportunity to limit rare earth exports of keyhole technology to the production of high technology and used for the production of cell phones, memory chips, and rechargeable batteries . China supplies about 80 percent of the world's rare earth minerals. Particularly semiconductor manufacturers will be affected by a ban on such exports. Chips shares like Nvidia were lower.

Bank shares also coincided with bond yields with longer dated debt rates now below short-term interest rates. Long-term bond yields are now below short-term rates most since the financial crisis in 2008.

Ticker Security Last Change % Chg
AAPL APPLE INC. 177.38 -0.85 -0.48%
NVDA NVIDIA CORPORATION 140.34 -2.99 -2.09%
JPM JP MORGAN CHASE & CO. 108.22 -0.30 -0.28% CATERPILLAR INC. 121.48 -0.11 -0, 09%

In the commodity markets US West Texas Intermediate Crude Oil fell to a low of $ 57.55 per barrel, the lowest level in two months. US crude oil prices lost 6.8 percent last week, as weak demand overshadowed threats to deliver from US sanctions against Iranian exports.

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