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.