New York (AFP)

Wall Street opened in red Wednesday in a market preoccupied with warning signs of recession.

Its leading index, the Dow Jones Industrial Average, fell by 1.70% to 25,832.81 points around 13:45 GMT.

The Nasdaq, with strong technological color, fell by 1.81% to 7,871.42 points and the expanded index S & P 500 yielded 1.58% to 2,880.17 points.

On Tuesday, the New York Stock Exchange closed sharply higher, invigorated by a respite in the trade dispute between Beijing and Washington.

The US administration has announced the postponement of some additional tariffs that the United States intends to impose on China on consumer goods.

But Wednesday before the opening, the interest rate on 10-year US Treasury bills passed temporarily Wednesday under the two-year coupon.

This phenomenon, known as the "reversal of the yield curve", reflects the yield difference granted by the US government to investors who are betting on its short-term or long-term debt.

Particularly feared financial markets, it is usually the leading indicator of a recession.

The reversal occurred around 1140 GMT, when the 10-year rate fell just below the 2-year rate, around 1.62%.

The 10-year rate was 1.60% around 1445 GMT and the 2-year rate was 1.59%.

The rate of the loan at 30 years fell to its lowest historical level at 2.0139% around 1150 GMT.

The trade war between the United States and China, the world's two largest economies, is weighing on investor sentiment, causing them to fear long-term consequences for global growth.

Trumped a little over a year ago by Donald Trump to force China to come to the negotiating table and try to remedy both a very large trade deficit and business practices that Washington considers unfair, the conflict has intensified in recent weeks.

Washington has indeed announced additional customs duties on products imported from China and Beijing responded by letting the price of its currency slip.

"At the moment, market players are betting more on an economic slowdown than on a recession, but if sharp declines continue on the stock market, this could be a clear indicator of a recession." Historically, the stock market recorded its worst meetings in the six months leading up to a recession, "said Charles Schwab's Liz Ann Sonders.

© 2019 AFP