You are using an older browser version. Please use a supported version for the best MSN experience.

Top Stories

Recession fears hit Wall Street after grim China, German data

Reuters logo Reuters 2019-08-14 Medha Singh

Wall Street opened sharply lower Wednesday as poor economic data from China and Germany put the focus back on the impact of a bruising China-U.S. trade war that is pushing some major economies toward the brink of recession.

The outlook for Germany's export reliant economy was also grim and Chinese industrial output growth cooled to a more than 17-year low, adding to headwinds for U.S. multinationals that rely on global demand.

The U.S. bond market showed red flags, with two-year Treasury yields rising above those for 10-year paper for the first time since 2007, pointing to the risk of recession.

Wall Street's main indexes surged more than 1.5% on Tuesday after Washington delayed the introduction of tariffs on some Chinese consumer goods.

"It's almost as if global investors either don't buy the tariff delay as a sign of real progress in the U.S.-China trade war or have been too consumed by further evidence of global economic weakness to care," BMO Capital Markets strategist Stephen Gallo said.

At 8:28 a.m. ET, Dow e-minis were down 361 points, or 1.37%. S&P 500 e-minis were down 39.25 points, or 1.34% and Nasdaq 100 e-minis were down 119 points, or 1.54%.


Banks were among the losers in trading before the bell, with Bank of America Corp, Citigroup Inc, JPMorgan Chase & Co, Goldman Sachs, Wells Fargo & Co and Morgan Stanley down between 2.3% and 3.1%.

Shares of Apple were down after boosting markets a day earlier with a 4% rise.

Chipmakers were also trading lower, with Micron Technology, Broadcom and Nvidia down more than 2%.

Macy's tumbled after the department store operator cut its full-year profit forecast as it discounted heavily to clear excess spring season inventory.

Rivals Target Corp and Nordstrom Inc slipped between 3.8% and 4.5%. (Reporting by Medha Singh and Arjun Panchadar in Bengaluru; Editing by Anil D'Silva)

Related gallery: 107 ways to make extra money [Provided by Money Talks News] 

107 Ways to Make Extra Money: No matter how carefully you plan, money can run a little short at times. Maybe your car broke down, you’re preparing for the next recession or you just want an extra night on the town.Whatever the reason, if you need an extra $10, $100 or $1,000, there are plenty of ways to find it these days, because the internet is the greatest job creator the world has ever known.Following are more than 100 ways to make extra cash, and some of them take just a few minutes to get started. Before you start reading, bookmark this page … you never know. And if you want to get tons more ideas to make extra money, sign up for our free newsletter.It's not the usual blah, blah, blah. Click here to sign up for our free newsletter.


More From Reuters


XD Load Error

image beaconimage beaconimage beacon