The Dow Jones Average dropped 120.93 points to close at 25,777.90 while S&P 500 fell 9.22 points or 0.32% to finish at 2869.16.
The yield curve has inverted to its worst level since 2007, the 30-year rate now under 2 percent. The long-term Treasury rates continued the side as the yield curve inversion continues. The 2-year note fell to 1.526% which is 5 basis points above the 10-year note`s rate. The curve closed inverted on Monday. Note that the yield curve inverted in December 2005, two years before the financial crisis and subsequent recession. Also, the tensions that the trade war is now becoming an issue that many on Wall Street are paying close attention to as some parts of the economy are clearly under stress. Trump suggested at the G7 summit in France that China was ready to sit down and talk, however China countered that there were no changes the the stance taken in Beijing.