Wall Street tumbles, yields fuel economic fears

Credit: Reuters Studio
Published on March 22, 2019 - Duration: 01:11s

Wall Street tumbles, yields fuel economic fears

All Street stocks sold off sharply on Friday, with the benchmark S&P 500 index falling nearly 2 percent as weak factory data from the United States and Europe led to an inversion of U.S. Treasury yields, fueling fears of a global economic downturn.

Fred Katayama reports.

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Wall Street tumbles, yields fuel economic fears

Stocks and bond yields sank in unison Friday, as investors fretted over signs of a global economic slowdown.

Sparking those fears: weak manufacturing data.

The Dow sank more than 460 points, shedding 1.8 percent.

The S&P 500 lost nearly 2 percent at 2800.

The Nasdaq closed down 2.5 percent at 7642.

International Assets Advisory CEO, Ed Cofrancesco: SOUNDBITE: INTERNATIONAL ASSETS ADVISORY CEO, ED COFRANCESCO, (ENGLISH) SAYING: "The market's being driven by economic concerns.

All the economic data we've been getting in the United States over the last few weeks has been at best mixed and probably more realistically, negative.

And now we have really bad economic data coming out of Europe today, and we've seen a flight to quality, a flight to bonds, which of course, has produced an inverted yield curve." Manufacturing surveys in the U.S., Europe and Japan suffered from trade tensions in March.

That spawned a development known as an inverted yield curve that is seen as a leading indicator of a recession.

The tumbling bond yields hurt bank stocks like Citigroup and Bank of America.

Nike shares dropped.

The sportswear maker's quarterly revenue fell shy of analysts' estimates.

Shares of its strategic partner, Foot Llocker, slid as well.

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