Stocks fell sharply and ended near session lows Friday as a round of disappointing economic data out of Europe and an inversion of the U.S. Treasury yield curve stoked worries over global growth.
The Dow Jones Industrial Average DJIA, -1.77% dropped around 460 points, or 1.8%, to end near 25,503, according to preliminary data, while the S&P 500 SPX, -1.90% shed 1.9% to close near 2,801. The Nasdaq Composite COMP, -2.50% dropped 2.5% to end near 7,643.
Equities began the session on a weak note after purchasing-managers-index readings across Europe came in weaker than expected.
Losses were extended after a measure of the yield curve inverted, with the yield on the 10-year Treasury note falling below the yield on the 3-month T-bill.
An inversion is seen as a reliable recession indicator, typically preceding such downturns by around a year or more.
