US stocks turn negative after yield curve inverts

Thursday, 22. August 2019 16:34

Markets in the United States gave up gains from earlier in the session and traded in the red on Thursday amid increased recession fears after the main part of the yield curve inverted for the third time in the past 10 days. The yield on the two-year Treasury once again topped the 10-year note yield, which has been a reliable recession indicator in the past. Meanwhile, investors also digested worse-than-expected PMI figures and kept an eye on comments from Fed officials made during the central bank's symposium in Jackson Hole. Fed's Esther George downplayed recession concerns, while Patrick Harker noted the yield curve inversion could signal a recession but is definitely not the only aspect that should be watched.

The Dow Jones lost 0.06% at 10:35 am ET. United Health led the losses as it slid 1.98% at 10:35 am ET.

Nasdaq 100 dropped 0.82% at 10:35 am ET. The worst performer was JD.com, whose shares plunged 4.39% at 10:37 am ET.

The S&P 500 fell 0.47% at 10:35 am ET. L Brands pulled the index down as its stock plummeted 9.84% at 10:36 am ET.

The euro dipped 0.11% against the dollar to sell for 1.10717 at 10:38 am ET.

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Breaking the News / NP