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Stocks Drop amid Concerns about Economy

Stocks Drop amid Concerns about Economy Photo: WDIO/MGN

The Associated Press and WDIO News
Updated: August 14, 2019 03:56 PM

Stocks dropped sharply on Wall Street Wednesday after the bond market threw up another warning flag on the economy.

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The yield on the 10-year Treasury briefly dropped below the two-year Treasury's yield this morning for the first time since 2007. In other words, investors can make more money over two years than they can make over ten, which is contrary to the normal perception of investments.

That's an ominous signal that has correctly predicted many past recessions. Investors responded by dumping stocks, more than erasing gains from a rally the day before.

The Dow Jones Industrials Average ended the day down 800 points, a 3 percent drop, and closed at 25,478.

Credits

The Associated Press and WDIO News

Copyright 2019 WDIO-TV LLC, a Hubbard Broadcasting Company. All rights reserved

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