Growing fear of recession

President Donald Trump insists "our economy is strong" after stocks suffer their worst day of 2019 on Wednesday. ABC News' Elizabeth Hur has the details.
2:19 | 08/15/19

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Transcript for Growing fear of recession
And out to the other big story this morning your money and growing concern about a looming recession. Stocks suffered their worst day of the year Wednesday the Dow plunging 800 points. ABC's Elizabeth her has been watching the markets overnight and also keeping track of what president trump is saying Elizabeth good morning. Today good morning to you yes investors may be nervous bracing for another turbulent day but president. This tweeting we are winning and our economy is strong. This morning recession fears melting on Wall Street and around the world following the worst day for stocks so far this year. The Dow sinking the 800 points that tumble due to a number of factors including what's called an inverted yield her. Which essentially happens when the yield the interest rate the government peace to borrow money on the ten year treasury is lower then to two year. A move that rattled investors according to ABC's chief business correspondent Rebecca Jarvis. Think about it like this what it's telling Wall Street. Is that a recession it. Could it be coming. In the next six to eighteen months the last time this how to spend. Back in 2007. Right before the Great Recession clearly investors are looking. For some clarity. And trade issues and about a how much V Europe being enact economic contraction. Will affect our economy. Experts say investors are also nervous about the rising trade war with China. President trump has backed off his earlier threat to impose new tariffs on Chinese goods. Now in this series of tweet the president insisting. Unlike others our economy is strong adding of course China wants to make a deal. And blaming the Federal Reserve Chairman saying China is not our problem our problem is with the Fed. So what does this mean if you have been saving for the long term with despite the major losses experts say your 401 case Shiller. Still be doing better than it was last year. Kenneth some good news there Elizabeth thank you.

This transcript has been automatically generated and may not be 100% accurate.

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