Quantcast
Connect with us

Major new recession warning sign sends market futures tumbling downward

Published

on

The financial world was hit on Wednesday with a major new red flag about a potential recession that sent stock market futures tumbling downward.

As Bloomberg reports, the yield on the ten-year U.S. Treasury bond has dropped below the yield of the two-year U.S. Treasury bond for the first time since 2007, which many market observers say is a leading indicator of a coming recession.

ADVERTISEMENT

Yields on ten-year bonds are usually higher than yields on two-year bonds because there is greater risk involved in investing in a long-term bond, which means investors in those bonds demand higher payouts than investors in short-term bonds.

But when the so-called yield curve inverts — that is, when ten-year bonds actually pay less than two-year bonds — it is seen as a sign that investors believe there are significant risks to the economy and are flooding their cash into safe harbors.

As for what this means for the U.S. economy as a whole, Bloomberg analyst Joe Wiesenthal writes “the last three times this happened, U.S. recessions soon followed.”

Pre-market trading on Wednesday showed futures of the Dow Jones Industrial Average trending downward by 1.44 percent, with the Nasdaq down by more than 1.5 percent.

ADVERTISEMENT


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

Body language expert dissects the power dynamic at play in the iconic Nancy Pelosi photo

Published

on

Last week, President Donald Trump met with Democrats at the White House to discuss the way both sides could work to fix the President's mistakes in Syria. Democrats left the White House saying that the President had another meltdown during the meeting, which prompted Trump to claim Speaker Nancy Pelosi (D-CA) was the one who had a meltdown. He then posted photos of Pelosi sitting quietly and another photo of Pelosi standing and pointing at him.

Body language expert Dr. Jack Brown posted the photo and gave his own analysis of what he believed was happening in the photo.

"When a person has little or no empathy — and/or when they're far from their emotional baseline, their ability to interpret how others will view an event becomes dramatically distorted," Brown explained Sunday. "Rarely has this behavioral axiom been better exemplified than last Wednesday at the White House."

Continue Reading

Breaking Banner

Internet cracks up at possible fake Mitt Romney Twitter account — and wants him to ‘run against Trump as Pierre Delecto’

Published

on

Slate reporter Ashley Feinberg wrote that she may have discovered a secret Mitt Romney Twitter account under the name Pierre Delecto.

The Atlantic did a lengthy profile Sunday which included the tidbit that Romney, like former FBI Director James Comey, had a secret Twitter account.

Continue Reading
 

Breaking Banner

Trump may keep troops in Syria — despite campaign promise to end ‘never-ending wars’

Published

on

President Donald Trump is learning why being the U.S. president isn't all rallies and fun state dinners; it's about difficult decisions.

New York Times reporters Maggie Habermann and Eric Schmitt wrote Sunday that Trump is considering leaving some troops on the ground in Syria, even though he wants to pull out and bring all troops home.

One plan proposed by the Pentagon says that a few hundred special forces would be left on the ground in Syria, while the rest would be shipped to Iraq. Trump also just sent troops to Saudi Arabia, despite a campaign promise to bring troops home.

Continue Reading
 
 
Help Raw Story Uncover Injustice. Join Raw Story Investigates for $1 and go ad-free.
close-image