Stocks log worst day in over 2 ½ months as bond market flashes recession warning

U.S. stocks closed sharply lower Friday, with all major indexes logging their worst day in more than 2 ½ months, after a downbeat round of economic data in Europe and the U.S. stoked global growth fears while a closely watched measure of the yield curve inverted for the first time since 2007, triggering recession worries.

Those fears were compounded when data showed growth in the U.S. manufacturing sector slowed to a 21-month low in March, according to the flash reading of IHS Markit’s purchasing manager’s index. The manufacturing index fell to 52.5 from 53 in February and below the 53.5 expected by economists in a FactSet survey.

As equities came under pressure, investors bought bonds, forcing the spread between the 3-month Treasury bill and the 10-year note to invert for the first time since 2007. A so-called yield curve inversion, where the rate of longer-dated debt falls beneath its shorter-dated counterparts, is widely viewed as a fairly accurate recession indicator, and the spread between three-month and 10-year yields is the most closely followed by economists.U.S.

After weak economic data helped send German government bond yields negative Friday, “it tends to make it difficult for our Treasurys to stay higher, and it feed the narrative that we have slowing global growth,” he added. “The Fed has set the tone for the markets, and if you trust their ability to ‘see around corners,’ then you will continue to maintain a risk-off position,” said Giddis in a note to clients.

Shares of Hibbett Sports Inc. HIBB, +20.29% rallied 20% after the sporting-goods store operator reported same-store sales growth of 3.8% versus the flat growth expected by analysts. The firm also issued guidance for the full 2020 fiscal year that surpassed forecasts.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why is the Dow falling? Banks and tech stocks drag down market on Wall StreetU.S. stocks moved broadly lower on Wall Street Friday, dragged down by banks and industrial companies. roon0292 not good for Individual-1 Europe and China are messes.
Source: USATODAY - 🏆 100. / 63 Read more »

Stocks making the biggest moves midday: Tiffany, Nike, Avon Products & moreThese are the stocks posting the largest moves midday Friday.
Source: CNBC - 🏆 12. / 72 Read more »

Stocks Edge Lower Amid Economic WorryGlobal stocks turned lower as investors weighed fresh signs of sluggish economic growth, with Wall Street projected to fall at the open. Thinking no. Just consolidating. You would think that mighty Russia and China would be able to keep an oil rich Venezuela going. Instead disaster. Capitalism is the engine, without it you have a car on concrete blocks in the back yard. We at InBest notes this earlier in the week, follow us for daily insight into the markets! Increase exposure to the US markets which remain strong and hold for the long run. Contact and follow us today we can help your portfolio grow!
Source: WSJ - 🏆 98. / 63 Read more »

Stocks making the biggest moves premarket: Tiffany, Hibbett Sports, Nike, Gamestop & moreSome of the names on the move ahead of the open.
Source: CNBC - 🏆 12. / 72 Read more »

Three stocks to hedge against an economic slowdownThe U.S. economy could be slowing down, but RDM Financial Group's Ron Weiner has three sector picks that could weather any trouble ahead. Mr Kramer Nke 100?
Source: CNBC - 🏆 12. / 72 Read more »