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		</div><p>The threat of a recession sparked a painful day in US financial markets.</p>
<p>The yield on the closely watched 10-year Treasury fell so low Wednesday that, for the first time since 2007, it briefly crossed a threshold that has correctly predicted many past recessions.</p>
<p>Weak economic data from Germany and China added to recent signals of a global slowdown.</p>
<p>That spooked investors, who responded by dumping stocks, sending the Dow Jones Industrial Average into an 800-point skid, its biggest drop of the year.</p>
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<p lang="en" dir="ltr">Unlike others, our economy is strong! <a href="https://t.co/EvNRzB8GBY">https://t.co/EvNRzB8GBY</a></p>
<p>&mdash; Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1161754440950603782?ref_src=twsrc%5Etfw">August 14, 2019</a></p></blockquote>
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<p>The S&;P 500 index dropped nearly 3% as the market erased all of its gains from a rally the day before.</p>
<p>Tech stocks and banks led the broad sell-off.</p>
<p>Retailers came under especially heavy selling pressure after Macy’s issued a dismal earnings report and cut its full-year forecast.</p>
<p>Investors have been ploughing money into the safety of US government bonds for months amid growing anxiety that weakness in the global economy could sap growth in the US.</p>
<p>Uncertainty about the outcome of the US trade war with China has spurred a return of volatility to the stock market in August, the Dow has dropped more than 5% and the S&;P 500 is down more than 4%.</p>
<p>Economic data from two of the world’s biggest economies added to investors’ fears on Wednesday.</p>
<p>European markets fell after Germany’s economy contracted 0.1% in the spring due to the global trade war and troubles in the car industry.</p>
<p>In China, the world’s second-largest economy, growth in factory output, retail spending and investment weakened in July.</p>
<p><i>“The bad news for global economies is stacking up much faster than most economists thought, so trying to keep up is exhausting,” </i>Kevin Giddis, head of fixed income capital markets at Raymond James, wrote in a report.</p>
<p>The S&;P 500 fell 85.72 points, or 2.9%, to 2,840.60.</p>
<p>The Dow sank 800.49 points, or 3%, to 25,479.42.</p>
<p>The Nasdaq composite lost 242.42 points, or 3%, to 7,773.94.</p>
<p>The Russell 2000 index of smaller company stocks slid 43.05 points, or 2.8%, to 1,467.52.</p>
<p>The losses come a day after stocks rallied when the Trump administration delayed tariffs on about 160 billion US dollars in Chinese goods that were set to take effect on September 1.</p>
<p>President Donald Trump took to Twitter to defend his trade policy Wednesday, saying: <i>“We are winning big time, against China.”</i></p>
<p>But many on Wall Street remain worried that the trade war between the world’s two largest economies may drag on through the 2020 US election and cause more economic damage.</p>
<p>“<i>We still see a substantial risk that the trade dispute will escalate further,”</i> said Mark Haefele, global chief investment officer at investment bank UBS in a note to clients.</p>
<p>Mr Trump also criticised the Federal Reserve for hamstringing the US economy by raising rates “too much &; too fast” last year and not reversing its policy aggressively enough — the Fed cut its key rate by a quarter point last month.</p>
<p> ;</p>
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