Enlarge this imageStock and https://www.seahawksglintshop.com/D-J-Fluker-Jersey bond markets are already roiled by problems about trade tensions along with the economy.Spencer Platt/Getty Imageshide captiontoggle captionSpencer Platt/Getty ImagesStock and bond markets have already been roiled by worries about trade tensions along with the economy.Spencer Platt/Getty ImagesUpdated at 9:01 a.m. ET Wednesday Stock prices tumbled Tuesday amid trader fears about trade, wiping out the gains that followed the Trump administration’s determination to hold off higher tariffs on imports from China. The Dow Jones Industrial Common dropped 799 points, getting rid of 3.1 p.c of its worth, even though the S&P 500 index fell three.2 per cent. The Nasdaq composite index plunged three.8 percent. In another worrisome sign for the economic climate, the interest rate on short-term U.S. Treasury securities actually rose above that of longer-term instruments.The unusual phenomenon is known as an inversion of the yield curve, something that hasn’t occurred since 2007. It often signals a slowing of growth and perhaps even a economic downturn, economists believe.Busine s Fed Chief’s Remarks On Economic climate And Interest rates Cheer Investors „What investors are worried about is the near-term financial state. They’re worried that something pretty serious is going to go wrong within the next, say, six to 12 months, and that’s going to tip the economic system into rece sion,” says Jared Bernstein, a senior fellow at the Center on Budget and Policy Priorities.Loading… Don’t see the graphic above? Click hereMarkets in Asia later adopted Wall Street’s lead. Hong Kong’s Hang Seng index dropped one.6 percent Wednesday, though Japan’s benchmark Nikkei index slipped 0.5 %. Meanwhile in China, where tariff negotiations with the U.S. are also being watched closely, the Shanghai composite index closed down 0.6 percent, recovering from a steeper drop at the open.Stocks in the U.S. are unusually volatile since the beginning of October, especially once-surefire technology shares. Major market indexes are barely up for the year. The decline has been especially big for companies such as Boeing, down nearly 5 % Tuesday, and Caterpillar, which lost nearly 7 per cent, that export heavily and stand to be hurt by the China-U.S. tariff war.Over the weekend, Trump agreed not https://www.seahawksglintshop.com/Germain-Ifedi-Jersey to raise tariffs on Chinese imports for 90 days, to give the two countries time to resolve their differences. Economy Is The U.S. Headed For Economic downturn? That sent stocks increased on Monday. But with time, investors appeared to rea se s their views of the market on Tuesday, sending inventory selling prices and bond yields lower. Normally, investors want more money to invest in long-term bonds, because they’re agreeing to lock up their money for a greater period. That’s why interest rates on, say, five-year notes tend to be greater than those on two-year notes, and 10-year notes tend to pay even more than that. But late on Monday, the reverse happened: Five-year notes paid le s than three-year notes, an indication that bond investors aren’t too sure what the next few months will bring.Busine s Why Aren’t Millennials Spending? They’re Poorer Than Previous Generations, Fed Says Bernstein, a former White House economist, notes that investors are worried about several factors. „They don’t like the fact that global growth is clearly slowing. The price of oil is really in bear territory. It’s fallen a great deal over the past few months. The Federal Reserve is kind of tapping the growth brakes. They’re not hitting them too hard, but it does slow the financial system down,” Bernstein says. At the same time, the one-time stimulus provided by last year’s tax cuts is likely to fade in 2019, Bernstein notes. Planet Money The OG Yield Curve Whisperer Then there’s the tariff war between China plus the United States, which threatens to upend trade relations between the world’s two largest economies. The big sell-off on Tuesday may have also been a kind of rush https://www.seahawksglintshop.com/Shaun-Alexander-Jersey for the exits by investors. The financial markets are closed Wednesday, a day of mourning for President George H.W. Bush.