[Aljazeera] The Dow tumbles 800 points as investors worry about the global economy, the US-China trade war and Brexit.Wall Street sold off sharply on Wednesday as recession fears gripped the market after the United States Treasury yield curve temporarily inverted for the first time in 12 years.
All three major US indexes closed down about three percent, with the blue-chip Dow posting its biggest one-day point drop since October after two-year Treasury yields surpassed those of 10-year bonds, which is considered a classic signal of recession.
Dire economic data from China and Germany suggested a faltering global economy, stricken by geopolitical tensions, Brexit woes and the increasingly belligerent US-China trade war.
Germany reported a contraction in second-quarter gross domestic product, and China's industrial growth in July hit a 17-year low.
"It was all negative and not much positive today," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana in the US. "We're outside of the earnings season and markets are being batted around by news."