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.