The stock markets in New York are closed on Wednesday with substantial losses. The fear of recessions was fueled by disappointing figures about the state of the German and Chinese economy. These fears were further fueled by the development of interest rates on the bond market. Macy's department store chain came up with quarterly figures in the business area.
The Dow-Jones index closed 3.1 percent lower at 25,479.42 points. The broadly composed S&P 500 dropped 2.9 percent to 2840.60 points and the tech fair Nasdaq was set 3 percent lower at 7773.94 points.
The German economy contracted in the second quarter compared to the previous three months, with foreign trade in particular depressing performance. Among other things, the trade feud between the United States and China affected the German economy. China reported a weakening of industrial production.
The bond markets were also not good for investor confidence. The interest rate for American ten-year bonds went below that of two-year debt paper. This so-called reverse interest curve is seen as a precursor to a recession.
Oil prices also fell sharply. A barrel of American oil cost 3.6 percent less than $ 55.08. Brent oil was 3.4 percent cheaper to $ 59.23 a barrel.
The Macy's store saw a considerably lower profit for the past quarter. The company is now also more negative about profit expectations and was lowered by more than 13 percent.
Pharmaceuticals Mylan (min 8.5 percent) and Teva (min 10.8 percent) were accused by US representatives of withholding information. That would have happened during an investigation into prohibited price agreements for medicines that are no longer patented. Maker of down jackets Canada Goose (minus 7.5 percent) achieved a better-than-expected turnover, but kept its expectations for the whole of 2019.
Uber fell 6.8 percent and reached the lowest level since the IPO earlier this year. According to analysts, there are too many questions about the disappointing outlook.
The euro was worth $ 1,1134, against $ 1,1146 at the close of European markets.