Economic security

Dow falls 460 points as US recession indicator flashes red

The Dow fell 460 points Friday after a US recession indicator blinked red and a report on German manufacturing raised concerns about Europe's most important economy.
The index shed 1.8%, while the S&P 500 closed down 1.9%. The Nasdaq plunged 2.5%. It was the worst performance for all three major indexes since January 3.
The yield on 3-month Treasuries rose above the rate on 10-year Treasuries for the first time since 2007 — a shift that scared Wall Street. Investors have piled back into stocks after a sell-off in late 2018.
The flattening yield curve, or the difference between short- and long-term rates, has worried investors for months. A narrowing spread is typically seen as sign that long-term economic confidence is dwindling. For decades, an inversion has been a reliable predictor of a future recession.
Friday's flip added to pressure on the Dow that was building before US markets opened.
The index stumbled at the bell on poor manufacturing data from Germany, which also spelled trouble for the country's bond market. The yield on Germany's benchmark 10-year government bond fell below zero for the first time since October 2016.