Traders work on the floor at the New York Stock Exchange, August 13, 2019.
Eduardo Munoz | Reuters
Stock futures indicated little change for stocks on Wall Street on Thursday after first opening the overnight session lower. That follows the Dow Jones Industrial Average’s worst day of the year on Wednesday amid a recession signal from the bond market.
Dow futures were up 39 points, as of 12:32 a.m. ET Thursday, implying an opening gain of 35.58 points for the index on Thursday. S&P 500 and Nasdaq futures also pointed to little change at the open on Thursday for the two indexes.
The stock market took a huge hit in the previous session with the Dow plunging 800 points in its fourth-largest point drop ever to a two-month low. The Dow’s 3% drop was the worst this year. The S&P 500 also fell nearly 3%.
The massive sell-off was triggered by a bond market phenomenon on Wednesday where the yield on the benchmark 10-year Treasury note briefly broke below the 2-year rate. The inversion of this key part of the yield curve has been a reliable indicator of economic recessions.
“The 2-10 inversion is sending a massively negative signal that stocks are having a difficult time ignoring,” Adam Crisafulli, a J.P. Morgan managing director, said in a note on Wednesday.
The weak economic data around the world also