Stocks Nosedive, Yield Curve Inverts Amid Fears of a Trump-Induced Recession

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Donald Trump is currently running for reelection on the strength of the economy, which he believes will outweigh all the racism, corruption, cruelty, incompetence, white supremacy, and obstruction of justice. Yet that pitch is going to become a bit more difficult if the president tips the economy into a recession, the odds of which grow stronger each day, and which today’s market sell-off appears to be foreshadowing.

As of noon on Wednesday, the Dow Jones Industrial Average was down a whopping 620 points, or 2.36%. The S&P 500 dropped 2.37%, the Nasdaq Composite declined 2.75% and the Cboe Volatility Index—Wall Street’s fear gauge—spiked to a high of 22. Most alarmingly, the yield on the benchmark 10-year Treasury note fell below the 2-year rate, a bond market phenomenon that historically signals a coming recession. The yield on U.S. 30-year bonds also dropped to an all-time low; the fact that both…

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