Aug. 16 (UPI) — Significant market signals this week that warned of a possible recession rebounded from historic lows on Wall Street Friday, as did the sagging major U.S. indices.
Both 10-year and 30-year Treasury bonds, which tumbled to record lows Wednesday, stabilized with gains Friday. Analysts said the bonds’ losses often indicate a coming recession.
The Dow Jones Industrial Average, which has also seen tremendous losses this week, kept up momentum in trading Friday, two days after it’s worst daily performance of 2019 also concerned experts about a recession.
By noon Friday, the Dow had gained more than 260 points, but still appeared to be headed for a net loss for the week. The S&P 500 had added 37 points and the Nasdaq 116 by mid-Friday.
“Although Treasury yields are climbing away from record lows on Friday as some tranquility returns to markets, the movements in the bond markets are poised to remain on investors radars in the week ahead,” Lukman Otunuga, senior research analyst at FXTM, said.
The recent volatility in U.S. markets has also been fueled by uncertainty with the ongoing trade conflict between the United States and China. Beijing vowed to retaliate this week after U.S. President Donald Trump said new tariffs would be placed on a list of Chinese exports. Those new taxes, however, were delayed until mid-December.
