Dow plunges 800 points, marking worst day for stocks this year

Amid an escalating trade war with China and protests in Hong Kong, President Trump was on the defensive as concerns rose over a possible recession yet to come.
2:51 | 08/15/19

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:

{{nextVideo.title}}

{{nextVideo.description}}

Skip to this video now

Now Playing:

{{currentVideo.title}}

Comments
Related Extras
Related Videos
Video Transcript
Transcript for Dow plunges 800 points, marking worst day for stocks this year
Closing down more than 800 points, and the warning, the key indicator that happened today that has foreshadowed recessions before. An inverted yield curve, when the yield on a 10-year treasury is lower than the 2-year note. The last time this happened was in 2007, just before the great the Dow down more than 3% in one day. President trump tweeting it's not the trade war with China. Instead, blaming the fed tonight. So what does this mean for American families? What could a downturn mean for 401 "k"s and jobs? Here's Rebecca Jarvis. Reporter: The worst day for stocks so far this year. Negotiations with China stalled. And the protests in Hong Kong. Tonight, president trump on the defensive. Insisting his trade war has not caused the market plunge. Tweeting, China is not our problem. Our problem is with the fed. But the fed cut interest rates just last month. And the president has backed off his threat to impose new tariffs on more than $300 billion of Chinese goods. We're doing this just for Christmas season. Just in case some of the tariffs would have an impact on U.S. Customers. But so far, they've had virtually none. Reporter: But the pain already being felt by American farmers. China no longer buying our soybeans. A lot of farmers will have to come up with an alternative. Reporter: And the inverted yield curve, the yield on the ten-year treasury bond dipping below that of the two-year for the first time since 2007. A signal a recession could be coming. If it were to stay in this condition for three to six months, you will see people start to be more concerned. Rebecca, the president is tweeting the economy is strong, blaming the fed. If they cut the rate again, that doesn't solve China and the other economies that are slowing. Interest rates are already near historic lows. We live in a global economy. What other countries has an impact. And we're not working together in part because of the trade war. Rebecca, thank you. We turn next to new reporting on Jeffrey Epstein.

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

{"duration":"2:51","description":"Amid an escalating trade war with China and protests in Hong Kong, President Trump was on the defensive as concerns rose over a possible recession yet to come.","mediaType":"default","section":"ABCNews/WNT","id":"64979680","title":"Dow plunges 800 points, marking worst day for stocks this year","url":"/WNT/video/dow-plunges-800-points-marking-worst-day-stocks-64979680"}