Stock market news: Dow tumbles more than 300 points

Mario Tama/Getty Images

• Stocks fell Wednesday as Wall Street sweats over global
  growth prospects and a bond selloff.
• The 2-year yield hit its highest level since
  2008.
• Trade-sensitive industrial stocks also fell as tensions
  between Washington and Beijing persisted.

Stocks fell Wednesday as concerns about global economic
growth and ongoing trade tensions continued to hang over Wall
Street and after the bond market resumed a sell-off that started
last week.

The Dow Jones
industrial average tumbled more than 300 points, or 1.14%,
to 26,128.80. Technology companies were among the
losers, with the Nasdaq
Composite dropping 1.64%, or 126 points, to  7,611.38.
On the S&P
500, down 0.87%, the tech sector also saw the steepest
losses. 

Elsewhere, shares of
Sears plummeted more than 35% after reports the cash-strapped
retailer
could file for bankruptcy protection as soon as this
week. 

US government bonds resumed a selloff after rising to multi-year
highs last week, with the 2-year yield rising to 2.906%, its
highest level since June 2008. With a humming US economy, the
Federal Reserve is expected to continue hiking interest rates.
The central bank has increased rates three times this year and
eight times since the financial crisis.

On Tuesday, the
International Monetary Fund downgraded its outlook for the world
economy. Citing concerns about trade and emerging markets,
the international lender lowered its global growth forecast for
this year and next in a report. 

An ongoing conflict between Washington and Beijing weighed on
large-cap industrial stocks, including Boeing (-2.5%)
and Caterpillar (-1.6%). When asked by a
reporter Tuesday if he was ready to place additional tariffs on
Chinese goods, Trump replied: “Sure, absolutely.” 

And a look at the upcoming economic calendar: 

• Monthly inflation numbers are out in the US. 
• Earnings season kicks off with reports from JPMorgan Chase,
  Citigroup and Wells Fargo.
• The International Monetary Fund and the World Bank hold an
  annual gathering in Indonesia.

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