USA stocks tumble more than 3% on trade, growth worries

USA stocks tumble more than 3% on trade, growth worries

A trader works at his desk during the closing bell on the floor of the New York Stock Exchange (NYSE), on November 20, 2018, in New York City.

Wall Street and the USA dollar are also struggling because of the inversion of the yield curve.The yield on three-year United States government debt is more than the interest rate on five-year debt.

U.S. stocks plunged on Tuesday with all three major indices erasing more than 3 per cent, amid worries over inverted yield curve signalling a possible economic slowdown.

The Dow Jones Industrial Average fell 211 points, or 0.8 percent, to 25,611.

At 2 p.m, ET, The S&P 500 index slid 73 points, or 2.7 per cent, to 2,717.

For Capital Economics, "we doubt that the ceasefire agreed between Presidents Trump and Xi in Buenos Aires will mark a real turning point in the trade war".

The movements in the bond market "clearly show that growth is likely to slow next year and inflation too", said Karl Haeling of LBBW. As we get headwinds from trade worries fading, you get an inverted yield curve and another brick added to the market's wall of worry, ' said Hogan.

Yields on two-year and three-year bonds held above the five-year yield for a second day, while the benchmark 10-year yield hit its lowest since mid-September as demand for longer-dated Treasuries rose on bets of an approaching economic slowdown. Citigroup fell 4.5 percent to $62.26. Bond prices surged, sending yields sharply lower as investors turned to lower-risk assets.

Police investigating telephone bomb threat at CNN offices
Police searched thoroughly the evacuated building and found nothing to substantiate the threat and later gave the all clear. We grabbed what we could and got out of the building and now, we are standing outside of the building, ' Lemon said on CNN.

Concerns are mounting over the lack of meaningful progress on the US-China trade talks, after Trump suggested on Tuesday that he may extend the 90-day trade truce with China.

The Nasdaq is down 172.11 points, or 2.3 per cent. Advanced Micro Devices dropped 9.4 percent to $21.49, while Micron Technology lost 6.4 percent to $37.47. Benchmark U.S. crude gained 0.6 percent to settle at $53.25 per barrel in NY.

Similarly, the S&P 500 dropped by 2.5pc with financials dropping by 4.0pc and industrials dropping by 3.5pc. Brent crude, used to price global oils, dropped $1.48 to $60.08 per barrel.

The Dow is down 511.39 points, or 2 percent.

The dollar weakened to 113 yen from 113.69 yen late Monday.

The Dow lost 574 points, or 2.2 percent, to 25,253.

AutoZone climbed 5.6 percent to $870.65 after the auto parts retailer delivered third-quarter earnings that exceeded analysts' forecasts. The FTSE 100 index of leading British shares slid 0.6 percent. The euro declined to $1.1330 from $1.1343. Hong Kong's Hang Seng added 0.3 percent.

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