Recession Fears Trigger 800 Point Drop on Wall St.

A trader follows a chart, Monday, Nov. 19, 2018, at the New York Stock Exchange. Big technology and internet companies came under heavy selling pressure again on Monday, leading to broad losses across the stock market. The Dow Jones Industrial Average briefly fell 500 points. (AP Photo/Mark Lennihan)

The Dow Jones Industrial Average suffered its worst daily percentage drop of the year after warning signals of a possible recession emerged in the bond market on Wednesday.

The market closed at 25,479 fueled by the 10 year Treasury Bond dropping to 1.6 percent, below the yield of the 2 year bond.

The last time the 10 year yield dropped below the 2 year in 2007 a recession followed.

Global economic uncertainty and the ongoing U.S.-China trade war are pushing investors to sell stocks and invest in government bonds.

The banking sector was also hit hard on Wednesday with Citigroup falling 5 percent and Bank of America and J.P. Morgan falling more than four percent.

The NASDAQ also fell 242 points to close at 7,744 and the S&P 500 closed down 86 points to close at 2,840.