Dow plunges 800 points amid growing recession fears

Wall Street is reeling as investors appear to be rattled by an escalating trade war with China and fears of a slowing global economy.
2:23 | 08/15/19

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Transcript for Dow plunges 800 points amid growing recession fears
Now to those growing recession fears after the Dow closed down 800 points last night, suffering its worst day all year. Rebecca Jarvis is at the new York stock exchange and has the latest for us. Good morning, Rebecca. Reporter: Good morning, robin, and you can expect another volatile day ahead. The Dow looks like it will open another 100 points or lower today. Typically we talk about stocks, but there is another market, the bond market that is trillions of dollars larger, and yesterday it sent a big, glaring warning sign for the economy. This morning, Wall Street reeling after the worst day for stocks this year with fears of a possible recession looming. The Dow plunging 800 points, down more than 3% Wednesday. Investors rattled by the escalating trade war with China, negotiations at a standstill and fears of a global slowing economy. And now a new warning sign, what's known as an inverted yield curve. When the yield -- that's the interest rate, on the ten-year treasury is lower than the two-year. Meaning investors get paid more to own the shorter term investment than they would for taking a longer term risk. The move which happened briefly Wednesday typically signals a recession is coming in the next 22 months. The last time it happened was 2007 just before the great recession. If it were to stay in this condition for three to six months, then you will see people start to be much more concerned. Reporter: While the president for now has backed off threats to impose new tariffs on Chinese goods, the uncertainty weighing on stocks and U.S. Farmers who traditionally sell billions of dollars in crops to China, but China has stopped buying in retaliation. A lot of farmers will have to come up with alternative sources of income. Reporter: And overnight, China has promised to retaliate to the latest round of tariffs, but I want to put all of these moves into context for your 401k, that retirement savings count. Even after the volatile turmoil we have seen in the markets, the year to date is up about 13% meaning if you put $1,000 in at the beginning of the year, today, you would have about $1,100. Amy? That's some relief for some people out there who are so concerned. President trump does not appear

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