Dow dives nearly 800 points on fears of economic slowdown

US markets sink on worries over slowing growth, trade truce outcome

US markets sink on worries over slowing growth, trade truce outcome

Large banks were among the big losers, with JPMorgan Chase shedding 4.4 percent, Bank of American losing 5.7 percent and Citigroup 5.6 percent.

The Dow fell by as much as 719 points, or 2.8 percent by mid-afternoon Tuesday, for a total drop of 800 points.

Yields on two-year and three-year bonds held above the five-year yield for a second day, while the benchmark 10-year yield hit its lowest since mid-September as demand for longer-dated Treasuries rose on bets of an approaching economic slowdown. This has not occurred since 2007.

Wall Street tumbled more than 3 percent on Tuesday, led lower by bank and industrial shares, as the USA bond market sent unsettling signs about economic growth and investors anxious anew about global trade.

The sharp turn in the markets followed a strong rally on Monday fueled by optimism over the news that President Donald Trump and his Chinese counterpart Xi Jinping had agreed at the G-20 summit over the weekend to a temporary, 90-day stand-down in the two nations' escalating trade dispute.

REVVED UP: AutoZone climbed 4.2 percent to $859.11 after the auto parts retailer delivered third-quarter earnings that exceeded analysts' forecasts.

"The sense is that there's less and less agreement between the two sides about what actually took place", Delwiche said. In Japan, the Nikkei 225 index fell 0.4 percent to 21,946.94.

The trade dispute has rattled markets in recent months as signs emerged that it has begun affecting corporate profits.

The focus now is on the spread between the two-year and 10-year yields, currently at its narrowest in over a decade and whose inversion has preceded the past three U.S. recessions.

Financial stocks also weighed the market down as the bond market signaled fears of a weakening economy.

"Cyclical sectors like technology, financials and industrials led markets lower, while defensive areas like utilities and real estate weathered the storm best".

MARKETS OVERSEAS: In Europe, Germany's DAX fell 0.6 percent, while France's CAC 40 dropped 0.4 percent. Toll's shares slid 1.6 percent to $32.99.

Apple lost 2.2 percent and Bank of America slumped 3.7 percent.

DISAPPOINTING DOLLAR: Discount retail chain Dollar General slid 5.6 percent to $105.50 after the company reported weak quarterly results.

ENERGY: Oil prices headed higher ahead of an OPEC meeting on Thursday, where members are expected to agree to cut output in 2019. Benchmark U.S. crude gained 0.6 percent to settle at $53.25 per barrel in NY. Brent crude, the worldwide standard, added 1 percent to $62.28 per barrel in London.

The dollar weakened to 112.82 yen from 113.69 yen late Monday. The euro strengthened to $1.1349 from $1.1342.

The S&P 500 lost 61 points, or 2.2 percent, to 2,729. The FTSE 100 index of leading British shares slid 0.6 percent.

Major indexes in Asia finished mixed. Silver rose 1 percent to $14.64 an ounce.

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