Dow drops 800 after bond market flashes a recession warning
BUSINESS RECORD STAFF Aug 14, 2019 | 9:01 pm
1 min read time201 wordsAll Latest News, Banking & Finance
CNN Business: The Dow fell 800 points today after the bond market, for the first time in over a decade, flashed a warning signal that has an eerily accurate track record for predicting recessions.
Here’s what happened: The 10-year Treasury bond yield fell below 1.6% this morning, dropping just below the yield of the two-year Treasury bond. It marked the first time since 2007 that 10-year bond yields fell below two-year yields.
U.S. stocks fell as investors sold stock in companies and moved it into bonds. The Dow fell as many as 808 points and was nearly 3.1% lower at the close. The broader S&P 500 closed down 2.9% and the Nasdaq sank 3%. It was the worst day for stocks of 2019.
Business Record Staff: The Iowa Index — an unweighted average price of 21 Iowa-based publicly traded companies — was down 3.65%, a greater percentage loss than each of the three major national indexes. See the full Iowa Index
The top three stock declines in the Iowa Index were Workiva Inc., down 9.54%; Lee Enterprises Inc., down 9.29%; and KemPharm Inc., down 8.18%
The only gainer on the Iowa Index was Art’s Way Manufacturing Co., which was up 3.33%.