Dow Drops 800 Points After Bonds Flash Warning

Aug 14, 2019

The Dow Jones Industrial Average sank 800 points after the bond market flashed a warning sign about a possible recession for the first time since 2007. 

 The yield on the 10-year Treasury briefly dropped below the two-year yield Wednesday, an ominous signal that has predicted past recessions. 

 Investors have been plowing money into long-term U.S. government bonds for months, sending yields sharply lower, as they anticipate slower economic growth. 

 Macy's plunged 13% after slashing its full-year profit forecast. 

 The Dow Jones Industrial Average fell 800 points, or 3%, to 25,479. 

 The S&P 500 lost 85 points, or 2.9%, to 2,840. The Nasdaq lost 242 points, or 3%, 7,773. 

 Bond prices soared. The yield on the 10-year Treasury sank to 1.58% from 1.68% Tuesday, a big move.