How major U.S. stock indexes fared Tuesday

Roman Schwartz
December 8, 2018

-China trade truce reached over the weekend wasn't all it was cracked up to be.

The selloff wipes out Monday's 288-point jump on the Dow. Bond prices surged, sending yields sharply lower as investors turned to lower-risk assets.

A flattening yield curve tends to hurt the profitability of banks as well.

Apple shares fell 4.40 percent in intraday trading after HSBC downgraded the stock, citing too much dependence on a single product and slowing emerging markets economies.

NEW YORK, Dec. 4 (Xinhua) - U.S. stocks plunged on Tuesday, with all three major indices erasing more than 3 percent, amid worries over inverted yield curve signaling a possible economic slowdown.

The Nasdaq fell 283 points, or 3.8 percent, to 7,158.

The Dow is up 307.85 points, or 1.2 percent.

"Historically there is a good correlation between the yield curve inverting and the timing of the next recession and the bond market has been a big focus for today", said Binky Chadha, chief strategist at Deutsche Bank in NY. The contract for the Dow lost 1.6 percent and that for the S&P 500 declined 1.5 percent. The Nasdaq fell 197 points, or 2.7 percent, to 7,244.

The jitters helped drive demand for government bonds today, pushing prices higher.

Meanwhile, the difference between yields on the 2-year and benchmark 10-year notes - with an inversion seen as a precursor of a US recession - narrowed to its lowest in over a decade.

Priyanka Chopra takes husband Nick Jonas' last name on social media
Priyanka Chopra is now a married woman, and she couldn't be any happier about it! What Nick and Pri have is handsome love. And, if anything, this whole ordeal has just made us want Nick and Priyanka to succeed as a couple even more.

The sell-off came ahead of Wednesday's closure of USA stock and bond markets in observance of a national day of mourning for former President George H.W. Bush. Though the S&P 500 Index closed higher on the suspension of tariff escalation, futures retreated Tuesday. Advanced Micro Devices dropped 9.4 percent to $21.49, while Micron Technology lost 6.4 percent to $37.47.

Wall Street is down after plunging 800 points in a single trading day.

Losses in banks, technology stocks and industrial companies outweighed gains elsewhere Tuesday.

Trade bellwethers Boeing Co's 3.6% drop and Caterpillar Inc's 5.7% retreat weighed the most on the Dow, while twin declines of 3.7% in Amazon.com Inc and Apple Inc dragged on the Nasdaq and S&P. The FTSE 100 index of leading British shares slid 0.6 percent.

US stocks veered sharply lower in afternoon trading today, pulling the Dow Jones Industrial Average down 700 points. Small-cap stocks were hit hard, with the Russell 2000 Index falling 68.21 points, or 4.4%.

Yields on two U.S. Treasury maturities at the front of the curve rose above longer-dated 5-year notes for the first time in more than a decade.

US stocks opened lower on Tuesday, as investors turned skeptical of the chances of a breakthrough in the U.S.

Toronto-Dominion Bank lost 1.4 per cent, while Bank of Nova Scotia dipped 1.6 per cent.

Discount retail chain Dollar General slid 8.2 percent to $102.54 after the company reported weak quarterly results. Germany's DAX lost 1.1 percent, while France's CAC 40 dropped 0.8 percent.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER