BUSINESS US stocks open lower amid renewed recession concerns

BUSINESS

US stocks open lower amid renewed recession concerns

Xinhua

23:10, August 28, 2019

NEW YORK, Aug. 28 (Xinhua) -- U.S. stocks opened lower on Wednesday, as the U.S. bond market once again rattled investors with deepening yield curve inversion, which spurred further concerns over an impending recession.

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Traders work on the trading floor at the New York Stock Exchange (NYSE) at the opening of the market in New York City, U.S. (Photo: VCG)

Shortly after the opening bell, the Dow Jones Industrial Average fell 65.94 points, or 0.26 percent, to 25,711.96. The S&P 500 dropped 11.33 points, or 0.39 percent, to 2,857.83 The Nasdaq Composite Index slid 40.97 points, or 0.52 percent, to 7,785.97.

The majority of the 30 blue-chip stocks in the Dow fell into the red zone around the opening bell, with shares of Microsoft down nearly 1.6 percent, leading the losers.

Eight of the 11 primary S&P 500 sectors traded lower around market opening, with the financials sector down 0.7 percent, leading the laggards.

Shares of Tiffany rose over 0.9 percent, after the U.S. luxury jewelry giant reported second-quarter profits that topped market forecast, despite lower-than-expected quarterly revenues.

All of the long-dated U.S. Treasury yields continued to pull back on Wednesday morning, while the short-term 3-month Treasury rate has been on the rise. The 30-year Treasury yields struck a fresh low of a bit over 1.9 percent at one point.

The closely-watched spread between the 2-year yield and the benchmark 10-year yield once widened to 6.2 basis points, hitting an unprecedented level since 2007, according to statistics of global financial services firm Tradeweb.

The expanding inverted yield curve has been largely viewed as a key precursor of an imminent recession, further stoking risk-off sentiment among global investors.

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