Dec. 4 (UPI) — Stocks took a tumble Tuesday as the Dow Jones Industrial Average fell nearly 800 points amid renewed fears regarding the U.S.-China trade war and a possible economic slowdown.
The Dow closed down 799.36 points or, 3.10 percent, at 25,027.07, while the S&P 500 fell 3.24 percent and the Nasdaq Composite slid 3.8 percent, as President Donald Trump stoked trade war fears and a flattening yield curve prompted worries of a recession.
Trump tweeted Tuesday morning about negotiations on a trade deal with China and Chinese President Xi Jinping, reiterating that new tariffs could be implemented in addition to existing tariffs if the talks are unsuccessful.
“President Xi and I want this deal to happen, and it probably will. But if not remember I am a Tariff Man, Trump wrote. “When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power.”
Concern over a possible recession also had a negative impact on the markets, as the yield on the three-year Treasury note surpassed its five-year counterpart on Monday.
Historically, inversion of the yield curve in which short-term rates are higher than long-term ones, has been a precursor to a recession.
Shares of J.P. Morgan Chase, Citigroup and Bank of America all declined more than 4 percent, while Citigroup and Morgan Stanley both reached 52-week lows, as a result of the recession fears, CNBC reported.
Much like in October and early November when stock markets were down, major tech stocks also declined Tuesday with Apple, Amazon and Google’s parent company Alphabet all falling more than 3 percent.