It was far from the dog days of summer on Wall Street this past week. Just look at the stock market, where perplexed investors have been sending stocks on a wild ride in August. Prices for stocks, gold, oil and other investments have been heaving as investors flail from one moment of uncertainty around Trump's trade war to another around what central banks will do with interest rates.
The 10-year yield has sunk so much that on Wednesday it dipped below the yield of the two-year Treasury, a rare occurrence and one that historically has suggested a recession may be a year or two away.
Monday's losses are reversed, with the Dow spiking higher after the United States decides to delay some tariffs on Chinese goods. Those products include cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing. Apple (AAPL) surges 4% while chipmakers Nvidia (NVDA) and Intel (INTC) are up about 3%.
The broad S&P 500 Index of large-cap stocks gained 1.4% to 2,886.80.
Stocks, bonds and other investments heaved up and down throughout the week, with worries hitting a crescendo on Wednesday when a fairly reliable warning signal of recession flipped on in the U.S. Treasury market.
Add in worries over Brexit, Italian politics and political unrest in Hong Kong and the backdrop for stock markets is about as hard as at any time since the global financial crisis a decade or so ago.
Recovering US Treasury bond yields lift financial shares higher.
World sharemarkets have clawed back more of their losses on Saturday morning New Zealand time, with a key section of the yield-curve on US Treasury bonds now more firmly snapped back into a usual shape.
The bounce for yields follows a weeklong slide that included a sharp drop on Wednesday that rang yet another alarm bell for the economy.
The Dow Jones Industrial Average rose 129 points Thursday, a day after dropping 800 points as investors grew more concerned about a slowdown in the global economy.
As mentioned previously, while an inversion of the U.S. yield curve has been a reliable indicator for warning of an economic recession, predicting the past 5 recessions and nearly all USA recessions in the past century. But he does expect growth to slow in the second half this year into 2020.
While Thursday's session ended on a mostly positive note, sentiment remained highly volatile as worries about a weaker global economy and US-Sino relations were keep traders on the edge of their seats.
General Electric (GE), however, has its worst day in more than a decade. The S&P 500 rises 1.4% and the Nasdaq is up 1.7%. Both indexes have slumped for three consecutive weeks and are off about 5% from last month's all-time highs.