Dow drops 800 points as Wall Street suffers worst day of year on recession fears

[RainCaster]

15. Reuters is giving the Marmalade Shart Cannon full credit for this

Reuters says that this "has Trumps fingerprints all over it"

NEW YORK (Reuters Breakingviews) - A U.S. recession warning from financial markets has Donald Trump’s fingerprints all over it. A key bond market metric turned negative for the first time since 2007 on Wednesday, sending stocks tumbling. Other economic indicators in the United States and abroad are deteriorating. The common thread linking these is the president’s trade war.

The U.S. economy started the year with a good head of steam. Growth hit a three-year high of 2.9% in 2018, corporate coffers were swelling from the tax cuts the president signed into law a year earlier, and unemployment stood at the lowest level in nearly a half century. Sluggish growth overseas and a negative market reaction to the Federal Reserve’s December rate hike suggested some fragility, but virtually nobody was predicting a recession before 2021.

The White House has since escalated trade tensions, with Trump twice in the past three months announcing tariff increases affecting some $500 billion of imports from China.

As a result the yield on the Treasury’s benchmark 10-year note has since early May fallen by nearly a percentage point, to 1.59% Wednesday afternoon. Earlier in the day it briefly traded below the return on the Treasury’s 2-year note, something investors haven’t seen since June 2007. That spooked equity markets, with the S&P 500 Index down nearly 3% in early afternoon trading.