A selloff in U.S. stocks accelerated into Wednesday afternoon after the bond market flashed its brightest warning signal yet presaging a potential recession. The three major indices were on pace for their worst session of 2019.
The yield on the 2-year U.S. Treasury note rose above that of the 10-year U.S. Treasury just after 6 a.m. ET Wednesday, marking the first inversion of this closely watched portion of the yield curve in more than a decade.
The Dow Jones Industrial Average dropped about 800 points, or 3%, while the yield on the U.S. 30-year Treasury bond fell to a record low.
Office furniture manufacturing stocks were hammered as well with Knoll falling 3.47%, Herman Miller sliding 3.37%, Steelcase dropping 3.12% and Kimball down 2.09%.
Office furniture manufacturers as a whole have held up pretty well against the tariffs imposed by the Trump administration. While many components that go into their products are made in China, a great bulk of the final assembly and value added come via their US factories. Nevertheless, a looming recession will dent the supercharged sales of furniture to tech startups.