DOW PLUNGES MORE THAN 700 POINTS
Fred Imbert
CNBC.com
12/4/2018
Stocks fell sharply on Tuesday in the biggest decline since the October rout as investors worried about a bond-market phenomenon signaling a possible economic slowdown. Lingering worries around U.S.-China trade also sent jitters down Wall Street.
The Dow Jones Industrial Average fell 719 points, or 2.8 percent, on track for its biggest decline since Oct. 10. At its low of the day, the Dow had fallen more than 800 points. The S&P 500 declined 2.8 percent to trade below its 200-day moving average as the financials sector lagged. Utilities was the only positive sector in the S&P 500, rising 0.8 percent. The Nasdaq Composite also dropped 3.3 percent.
“You can see the utilities positive on the day, but financials are getting hammered on the flatter curve while industrials are likely down on the tariffs headlines,” said Jack Ablin, founding partner of Cresset Wealth.
The yield on the three-year Treasury note surpassed its five-year counterpart on Monday. When a so-called yield curve inversion happens — short-term yields trading above longer-term rates — a recession could follow, though it is often years away after the signal triggers.
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