U.S. Stocks Declined Due to The Risk of Global Economic Recession

Because of worries about the global economic recession, investors have transferred money to the bond market.

At Monday’s trading session, the US stock market fell after data showed that global economic growth weakened. Investors meanwhile continue to worry about yield curve. However, the Dow Jones index rose when Boeing stocks rebounded after many recent price declines.

However, the market did not react much to the news that Robert Muller could not get evidence that Russia intervened in the 2016 presidential election. At the close of Monday’s trading session, the S&P 500 dropped 2.35 points or 0.08% to 2,798.36 points. Technology and financial stocks declined. The Nasdaq index fell 5.13 points to 7,637.54 points. Dow Jones index increased by 14.51 points to 25,516.83 points.

Market movements began to turn upside down when Bloomberg reported that US officials were worried that China might disagree with US requirements in negotiations. The source also said that Chinese negotiators said they did not receive an agreement to ensure that the US would completely remove tariffs on Chinese goods after signing the agreement.

The US stock market still focuses on the worries about the global economic recession, which began to rise from Friday when a series of large-scale water production indicators such as Europe and the US signaled the slowdown. Data from the US showed that the US manufacturing industry in March 2019 fell to its lowest level in 21 months.

On Monday, Asian stock markets fell, European stock markets weakened. Therefore, investors in worries have transferred money to the bond market. The volatility of the yield curve, when long-term bond yields fall below the short-term bond yields, is seen as a sign that the economic recession is approaching.

Figures from Europe show that the German business confidence index rose to 99.6 in March 2019 from 98.3 the previous month. This is information from Dow Jones Newswires. Chicago Fed President Charles Evans said he still needs to be cautious to see how the data will signal before deciding on interest rates moves.