United States

Dow tumbles 400 points after bond market flashes a recession warning

New York (CNN Business)The Dow slid more than 400 points Wednesday after the bond market, for the first time in over a decade, flashed a warning signal that has an eerily accurate track record for predicting recessions.See what's driving markets nowFear and Greed indexThe DowHot stocks and key moversNasdaqBondsHere's what happened: The 10-year Treasury bond yield fell near 1.6% Wednesday morning, dropping just below the yield of the 2-year Treasury bond. It marked the first time since 2007 that 10-year bond yields fell below 2-year yields. US stocks fell as investors sold stock in companies and moved it into bonds. The Dow (INDU) was about 1.5% lower. The broader S&P 500 (SPX) was down 1.4% and the Nasdaq (COMP) sank 1.6% Wednesday morning. ...