Stocks extend decline to nearly 3%

|By:, SA News Editor

The three major U.S. averages push further down as investors as the 2 year-10 year yield curve briefly inverted, flashing a recession warning.

The Nasdaq sinks 2.8% and the S&P 500 and Dow each slump 2.5%.

Financials (-3.0%) and information technology (-3.0%) take the biggest hits among S&P 500 sectors, while the historically defensive utilities (+0.2%) and real estate  (-0.8%) sectors fare better than the broader market.

Notable movers include: Citigroup (-4.7%), Bank of America (-4.7%), Cisco (-3.4%), and Facebook (-3.9%).

Investors turn to risk-off investments of Treasurys; 10-year Treasury rises, pushing yield down 11 basis points to 1.595% and the 2-year Treasury yield falls almost 9 bps to 1.587%. Earlier the 10-year yield slipped below that of the 2-year, which can be a signal that a recession is coming.

Gold rises 1.0% to $1,529.70 per ounce.

Crude oil slides 4.9% to $54.32 per barrel.

Dollar Index +0.2% to 97.98.

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