CHATTANOOGA (WDEF) – If you’ve been keeping up with economic news today, you know that the Dow Jones Industrial Average sank 800 points.
That’s after the bond market flashed a warning sign about a possible recession for the first time since 2007.
It shook investors and those with retirement plans.
Chattanooga financial manager Chris Hopkins has some advice for them tonight.
“I guess the best you can give to the average 401k holder is first of all don’t over react..don’t freak out, these cycles come and they are inevitable . We have long cycles of expansion..we have cycles of contraction The important thing to remember is you can’t predict when they are going to happen.”
Hopkins says be prepared to ride the bumpy ride for investments.
NEW YORK (AP) – The latest on developments in financial markets (all times local):
The Dow Jones Industrial Average sank 800 points after the bond market flashed a warning sign about a possible recession for the first time since 2007.
The yield on the 10-year Treasury briefly dropped below the two-year yield Wednesday, an ominous signal that has predicted past recessions.
Investors have been plowing money into long-term U.S. government bonds for months, sending yields sharply lower, as they anticipate slower economic growth.
Macy’s plunged 13% after slashing its full-year profit forecast.
The Dow Jones Industrial Average fell 800 points, or 3%, to 25,479.
The S&P 500 lost 85 points, or 2.9%, to 2,840. The Nasdaq lost 242 points, or 3%, 7,773.
Bond prices soared. The yield on the 10-year Treasury sank to 1.58% from 1.68% Tuesday, a big move.
Stocks are falling sharply after the bond market threw up another warning flag on the economy.
The yield on the 10-year Treasury briefly dropped below the two-year Treasury’s yield Wednesday morning for the first time since 2007. That’s an ominous signal that has correctly predicted many past recessions.
Investors dumped stocks, more than erasing gains from a rally the day before.
Retailers came under especially heavy selling pressure after Macy’s issued a dismal earnings report.
The Dow Jones Industrial Average fell 616 points, or 2.3%, to 25,659.
The S&P 500 lost 68 points, or 2.3%, to 2,857. The Nasdaq lost 218 points, or 2.7%, 7,800.
U.S. government bond prices continued to soar as investors sought safety. The yield on the 10-year Treasury note sank to 1.59% from 1.68% Tuesday.