NEW YORK (AP) – Stocks are opening sharply lower on Wall Street following big losses in Europe after German’s economy shrank in the second quarter and as the U.S. bond market flashed a warning about a possible recession.
The Dow Jones Industrial Average was down as much as 400 points early Wednesday.
U.S. government bond prices continued to soar as investors sought safety, briefly pushing a key yield below a threshold that has correctly predicted recessions in the past.
The Dow fell 388 points, or 1.5%, to 25,894.
The S&P 500 lost 39 points, or 1.3%, to 2,887. The Nasdaq lost 1.5% to 7,894.
The yield on 10-year Treasury briefly fell below the yield on the 2-year note, which has correctly predicted previous U.S. recessions.
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