It was a difficult day on Wall Street on Wednesday, as the market suffered its worst day so far this year after movements in the bond market signaled the sharpest indication yet of an approaching recession.

The Dow Jones Industrial Average, which had already shed 400 points at the opening bell, spent the day in freefall before closing with a decline of 800 points, a drop of over 3 percent. The S&P 500 closed down 2.93 percent, and the Nasdaq posted a decline of just over 3 percent.

The market selloff was the result of an inverted yield curve in government bonds, when the yield on the benchmark 10-year Treasury note falls below the 2-year rate — a phenomenon that has preceded every recession for the past 50 years.

President Donald Trump blamed the Federal Reserve for Wednesday’s market plunge, calling Fed Chairman Jerome Powell “clueless” in an afternoon tweet.

In case you’re wondering, yield curve is the difference from how much it costs to borrow short term versus long term.  When that dynamic is thrown off, it means less profit for banks, leading to tighter lending.

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