The Dow Jones Industrial Average plummeted more than 800 points on Wednesday, as investors suffered their worst day of the year as new concerns arose over data on global economic growth.
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One big piece of news came when the yield on 10-year U.S. Treasury notes dipped below the yield of two-year U.S. Treasury notes, a rare occurrence described by market watchers as an “inverted yield curve.” The 30-year U.S. Treasury bond also hit a new record low on Wednesday.
The S&P 500 also fell by more than 85 points and the Nasdaq slid by more than 240 points.
The downturn in the markets came a day after the Dow closed up 373 points after the U.S. Trade Representative announced a delay in many of the import taxes imposed by the Trump administration’s planned tariffs on Chinese goods.
But new data from China indicated on Wednesday that the country’s factory output of goods, retail spending and investment weakened in July.
Other bad news that was apparently fueling the drop in U.S. markets was that Germany’s economy shrank 0.1% in the second quarter due to a decline in exports, signaling a recession could be around the corner.
On Aug. 5, the Dow closed down 760 points, or about 3%. The tumble came after China’s central bank allowed its currency, the yuan, to fall to its lowest level against the U.S. dollar in more than 10 years.
The growing trade fight between the two countries has intensified in recent weeks after President Donald Trump accused China of manipulating its currency. His comments came just days after he threatened to levy tariffs on about $300 billion of Chinese goods, extending existing tariffs.