Dow falls over 400 points as stocks open sharply lower following yield-curve recession warning

Stocks opened sharply lower Wednesday, pressured after the main measure of the U.S. Treasury yield curve temporarily inverted, sending a recession-warning signal. The Dow Jones Industrial Average DJIA, -1.51% fell 411 points, or 1.6%, to 25,869, while the S&P 500 SPX, -1.49% dropped 43 points, or 1.5%, to 2,883. The Nasdaq Composite COMP, -1.65% was down 133 points at 7,884, a loss of 1.7%. Ahead of the bell, stock-index futures extended losses after the yield on the 10-year Treasury note briefly traded below the 2-year note yield. An inversion is seen as an often-reliable precursor to recession and eventual stock-market peak, though history shows equities often put in pre-recession highs several months after the initial inversion. The yield on the 10-year note has traded below the yield on the 3-month Treasury bill since earlier this year.

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