Wall Street main indices slid more than 2% on Wednesday, as a closely watched US bond market indicator pointed to a renewed risk of recession following poor economic data from Germany and China.
Yields on the two-year Treasury notes rose above the 10-year yield for the first time since 2007, a metric widely viewed as a classic recession signal.
The interest-rate sensitive bank index slipped 3.
7% and the broader financial sector fell 3.0% in response.
Slumping exports sent Germany's economy into reverse in the second.