Stock market sinks on growing recession fears

/ CBS/AP

U.S. stocks opened sharply lower on Wednesday after the bond markets sent a warning about a possible recession.

The Dow was down as much as 450 points, or 1.8%, early Wednesday. The S&P 500 lost 1.7%, to 2,877, and the Nasdaq fell 1.9% to 7,866.

Earlier that day, prices on U.S. government bonds soared as safety-seeking investors bought up these products. As higher bond prices pushed yields lower, the yield on the benchmark 10-year Treasury note hit 1.622%, falling below the yield of a 2-year, which was 1.634%.

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The last so-called inversion of this part of the yield curve came in December 2005, two years before a recession brought on by the financial crisis hit.

First published on August 14, 2019 / 10:29 AM

© 2019 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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