Dow Slumps 800 Points After Bonds Flash Recession Warning

Dow Slumps 800 Points After Bonds Flash Recession Warning
Traders work before the closing bell at the New York Stock Exchange (NYSE) in New York City, on August 14, 2019. Johannes Eisele/AFP/Getty Images
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The threat of a recession doesn’t seem so remote anymore for investors in financial markets.

The yield on the closely watched 10-year Treasury fell so low on Wednesday, Aug. 14, that for the first time since 2007, it briefly crossed a threshold that has correctly predicted many past recessions. Weak economic data from Germany and China added to recent signals of a global slowdown.