U.S. stocks close lower amid earnings, recession fears

Source: Xinhua| 2019-08-21 04:57:30|Editor: Mu Xuequan
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NEW YORK, Aug. 20 (Xinhua) -- U.S. stocks closed lower Tuesday as investors digested corporate earnings reports with overhanging concerns of a possible economic recession.

The Dow Jones Industrial Average decreased 173.35 points, or 0.66 percent, to 25,962.44. The S&P 500 was down 23.14 points, or 0.79 percent, to 2,900.51. The Nasdaq Composite Index fell 54.25 points, or 0.68 percent, to 7,948.56.

Home Depot reported quarterly revenue of 30.8 billion U.S. dollars, up 1.2 percent from the same period last year. Its diluted earnings per share was 3.17 dollars. While its earnings beat expectations, its revenue fell short of estimates, according to Refinitiv data.

Last week, the 10-year Treasury yields briefly fell below 2-year Treasury yields. The yield-curve inversion is often seen as a signal that a recession is on the horizon.

In late July, concerns about global economic and trade uncertainty prompted the Federal Reserve to cut interest rates for the first time since the 2008 financial crisis.

Nobel-winning economist Robert Shiller said in an interview with CNBC on Tuesday that the central bank's move to cut rates showed a sense of alarm.

All of the 11 primary S&P 500 sectors declined. Financials and Materials sectors declined 1.4 percent and 1.22 percent, respectively, the top two laggards.