The Dow tumbles more than 300 points
- Stocks fell Wednesday as Wall Street sweats over global growth prospects and a bond selloff.
- The 2-year yield hit its highest level since 2008.
- Trade-sensitive industrial stocks also fell as tensions between Washington and Beijing persisted.
Stocks fell Wednesday as concerns about global economic growth and ongoing trade tensions continued to hang over Wall Street and after the bond market resumed a sell-off that started last week.
The Dow Jones industrial average tumbled more than 300 points, or 1.14%, to 26,128.80. Technology companies were among the losers, with the Nasdaq Composite dropping 1.64%, or 126 points, to 7,611.38. On the S&P 500, down 0.87%, the tech sector also saw the steepest losses.Elsewhere, shares of Sears plummeted more than 35% after reports the cash-strapped retailer could file for bankruptcy protection as soon as this week.
US government bonds resumed a selloff after rising to multi-year highs last week, with the 2-year yield rising to 2.906%, its highest level since June 2008. With a humming US economy, the Federal Reserve is expected to continue hiking interest rates. The central bank has increased rates three times this year and eight times since the financial crisis.
On Tuesday, the International Monetary Fund downgraded its outlook for the world economy. Citing concerns about trade and emerging markets, the international lender lowered its global growth forecast for this year and next in a report.
An ongoing conflict between Washington and Beijing weighed on large-cap industrial stocks, including Boeing (-2.5%) and Caterpillar (-1.6%). When asked by a reporter Tuesday if he was ready to place additional tariffs on Chinese goods, Trump replied: "Sure, absolutely."
And a look at the upcoming economic calendar:
- Monthly inflation numbers are out in the US.
- Earnings season kicks off with reports from JPMorgan Chase, Citigroup and Wells Fargo.
- The International Monetary Fund and the World Bank hold an annual gathering in Indonesia.