Stocks - Wall Street Tumbles After Brief Yield Curve Inversion

Wall Street slumped on Wednesday after the yield curve on the 2-year and 10-year Treasury note briefly inverted for the first time since 2007, increasing fears of a recession. The 2-year yield rose as much as two basis points above the 10-year at one point before retreating. By 9:55 AM ET (1355 GMT), it was back at 1.59%, one basis point below the 10-year, as weak economic data out of China and Europe triggered a broad rally in safe-haven assets. Figures released earlier showed industrial output growth in China fell to a 17-year low in July. They were followed by data showing that Germany suffered a 0.1% decline in GDP in the second quarter, dragging eurozone growth down to a mere 0.2%. Analysts at Deutsche Bank (DE:DBKGn) said they expect a second straight quarter of contraction for Germany in the current quarter, the technical definition of a recession.