Dow falls more than 700 points on recession fears

By Michael Hernandez

WASHINGTON (AA) - All three major stock indexes plummeted Wednesday as investors fret about concerns of a potential recession, erasing gains from a day earlier.

The Dow sunk more than 700 points in mid-day trading while the S&P 500 shed 2.5% and the Nasdaq dipped 2.7%.

The 10-year Treasury note fell below the 2-year yield jittering investors about a possible downturn in the economy. The odd yield curve inversion is seen as an indicator of economic recessions.

Investors had already been grappling with an ongoing trade war with the world's top two economies -- U.S. and China -- that has sent shockwaves through global markets.

Tuesday's gains that were made after U.S. President Donald Trump announced he would delay 10% tariffs on $300 billion of Chinese imports, and completely nix others, were erased following the curve inversion.

Washington and Beijing's trade war has stoked concerns about a slowdown in the global economy with a deal to end the dispute nowhere in sight.