August of economic recession and Chinese confusion & # 39; Collapse the Dow Jones



The main Wall Street Indexes are experiencing cases on Tuesday Greater than 3%, As part of a negative trend attributed to analysts confusion Around the current state of trade relations between the United States and China worries By a latent economic recession.

According to CNBC, the Dow Jones industrial average has a decline in 799.36 points (-3.1%) to close at 25,027.07, its worst day since October 10. On the other hand, the S & P 500 index fell 2,700.06 points and the Nasdaq 7,158.43, equivalent to 3.2% and 3.8%.

Whether between the US and China?

After holding a top in Argentina with Chinese President Shi Jinping, It. President Donald Trump said that he had agreed to reductions in Beijing, but the fact is that the words They do not agree With subsequent statements from his chief economic adviser, Larry Koudov.

For some experts, the losses in stock market indices are related to the uncertainty about trade negotiations. "The market wants news from Concrete measures To reduce tariffs, Not just statements"Brent Shutta, the largest investment strategist in the Northwestern Mutual Wealth Management Company (NMWMC), has marketwatch.

August of crisis

On the other hand, this was Monday's fact that analysts consider as a Bad news: The Yield Curve It. Chains It was invested for the first time Since 2007

Especially, the levy on the three-year bonds exceeded its five year counterpart, which indicates that investors have More confidence In economic growth Current that in the future, As US It. Federal Reserve increases interest rates.

Experts warn that this can be the research to invest in the trend of two year chains compared to those of ten years, a phenomenon that was a Precise precursor Of virtually all economic recessions over the last half century.


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