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Wall Street shares drop as yield curve causes alarm

Wall Street shares drop as yield curve causes alarm

  • 4 December 2018
Image copyright Reuters
Image caption US shares fell sharply on Tuesday after gains the day before

Wall Street shares have fallen sharply, with financial companies suffering the biggest declines.

The Dow Jones and S&P 500 indexes were down about 2.5% at mid-day, while the Nasdaq sank almost 3%.

The fall came as a closely-watched financial measure caused alarm about US economic prospects.

Increasing doubts that talks between the US and China would lead to an easing of trade tensions also helped to reverse Monday's rise.

The declines in share prices extended several weeks of market turbulence.

On Monday, the share indexes closed only slightly up on the year as a whole, despite hitting record highs earlier in the summer.