(NBC News) Stocks plummeted Wednesday morning, with the Dow Jones Industrial Average dropping 800 points after a key economic indicator raised fears of a recession.
The yields on short-term treasury bonds eclipsed those of long-term bonds. The phenomenon, known as an inverted yield curve, has predicted every recession since the late 1970s.
“Behind all of that is the increasing acrimony between the US and China, the trade war that the president said was going to be short but is now almost a year and a half,” says CNBC’s Sue Herera.
U.S. Commerce Secretary Wilbur Ross says there’s no need for panic.
On Twitter, President Trump blamed the volatility on “clueless” Jay Powell, chairman of the Federal Reserve and the “crazy inverted yield curve” while also saying the U.S. is “taking in billions” from China.
Experts, meanwhile, say the tariffs are hurting U.S. Consumers and some businesses.