Stocks plummeted 800 points, deepening worries over a slowdown in the global economy. The Dow closed down 800 points. The jitters were aggravated as there was also distressing economic data from two major nations. Germany posted negative growth in the latest quarter, and China's growth in industrial output fell to a 17-year low.
Such a fall in value of stock, has in the past, been followed by a recession. Each of the last seven recessions, since 1969, was preceded by the 10-year falling below the two-year. The Trump administration, on Tuesday, said it was postponing some of its new tariffs on Chinese imports. As per calculations by the advocacy group Tariffs Hurt the Heartland, this affects about $160 billion worth of imports.
Tariffs on an additional $112 billion worth of Chinese imports are still set to take effect from September 1 onwards. As of now however, the US economy remains strong with unemployment being historically low, booming consumer spending and a healthy financial system.
