The U. S. equity markets are at its lowest start of a quarter in the last two days, pushing the indexes to new lows in the previous few years since 2008. Analysts believe that it is a telltale sign of a brewing recession – another red flag raised.
The Dow Jones Industrial Average DJIA, +0.38%, was down more than 500 points, or 1.9%, at 26,078, with a two-session skid of more than 3%. The unfortunate numbers represent one of the lowest quarter starts since the financial crisis in 2008 – 2009. The Dow slumped 19.4% in the fourth quarter OF 2008, according to Dow Jones Market Data.
Furthermore, the 10-year Treasury yield TMUBMUSD10Y, -4.34% was down five basis points to 1.59% Wednesday evening, while gold futures GCZ19, +0.40% jumped 1.3%, retaking a bullish perch for the haven asset at $1,500 an ounce.
Meanwhile, the Nasdaq Composite Index COMP, +1.05%, down 2.7% so far in October, and the Russell 2000 index RUT, +0.42%, off 3.1%, also marked their worst starts to the quarter since 2009.
Many economic and financial experts have been warning people of the brewing recession that may come to the United States in the next few years and the best business executives in the country to believe that it might happen and ranked it as one of their main worries, a new report reveals.
Duke University/CFO Global Business Outlook survey released on Wednesday that more than half (53%) of the financial executives they have surveyed said that they believed that the United States would fall into a recession in late 2020. Two-thirds of them think that the economy will have a downturn before the end of this year.