U.S. stock market keeps dropping
San José, CA – U.S. stocks fell again on Monday, August 12 as growing recession worries were added to ongoing concern about the direction of Trump’s trade war with China. The Dow Jones Industrial Average fell almost 400 points, or 1.5%, while the broader markets fell by smaller percentages of about 1.2%.
Bank of America raised the risk of recession in the next year to one in three, while U.S. bond interest rates continued to fall. The ten-year U.S. Treasury Bond interest rate fell again to about 1.5%. Lower bond interest rates show that investors expect economic growth to slow at best, and the economy to fall into recession at worst. The so-called ‘inverted yield curve,’ where long-term interest rates on bonds fall below shorter-term interest rates continue to flash a warning of a coming recession.