Stocks Fall as Bond Market Flashes a Recession Warning

On Friday March 23rd the treasury bond yield curve inverted signaling fear across the bond market.  This comes after the FED's rate change decision two days prior to halt rate hikes.  An inversion occurs when yield from long term bonds is smaller than short term ones.  While the article points out that there are several ways to represent and measure the yield curve and not all have inverted, like the two and 10 year treasury notes.  While a inverted yield curve has preceded every large economic downturn there is not a causal relation.  Several times the yield curve has inverted without a recession following within the next year.  However the inversion on Friday resulted in a fears of a coming recession and composite indexes, The S&P fell 190 basis points while the Nasdaq fell 250.



https://www.nytimes.com/2019/03/22/business/yield-curve-inverted-recession.html