NEW YORK (AP) — U.S. stocks fell broadly in morning trading Wednesday on Wall Street as investors shifted more money into the safety of bonds.
Investors also favored less-risky stocks, including utilities, amid concerns that global economic growth is being threatened by the trade war between the U.S. and China. The broad S&P 500 index is sliding for the fourth consecutive week and technology stocks continue to take some of the biggest losses. Nvidia fell 1%.
Consumer-related stocks were also among the biggest losers. Amazon fell 0.9% and Nike lost 2.1%.
Weak revenue forecasts sent several retailers into a nosedive. Abercrombie & Fitch, Canada Goose and Versace owner Capri Holdings all fell sharply.
Energy companies fell broadly following a 2.2% drop in oil prices. Banks continued declining on lower bond yields, which make loans less profitable.
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Utilities held up better than the rest of the market as investors continued shifting money into lower-risk assets. Rising bond prices pushed yields lower again. The yield on the benchmark 10-year Treasury note fell to 2.23%.
Rising bond prices, which pull yields lower, are typically a sign that traders feel jittery about long-term growth prospects and would rather put their money into safer holdings.
On Tuesday, the yield on the benchmark 10 year Treasury fell to its lowest level in nearly two years. It also fell below the yield on the three-month Treasury bill. When that kind of “inversion” in bond yields occurs over an extended period of time, economists fear it may signal a recession within the coming year. It has happened multiple times so far this year.
Investors have been increasingly anxious since the beginning of May. That’s when the U.S. and China concluded their 11th round of trade talks with no agreement. The U.S. then more than doubled duties on $200 billion in Chinese imports. China responded by raising tariffs on goods.
KEEPING SCORE: The S&P 500 index fell 0.5% as of 10:20 a.m. The Dow Jones Industrial Average fell 147 points, or 0.6%, to 25,197. The Nasdaq composite fell 0.4%.
THREADBARE DUDS: Abercrombie & Fitch plunged 23.8% after the retailer disappointed investors with figures for a key sales measure. The company’s sales at established stores fell shy of forecasts for the first quarter and it expects that measure to be flat in the second quarter, falling far short of analysts’ predictions.
Abercrombie is also closing several important stores, including its Hollister flagship location in New York.
COOKED GOOSE: Luxury coat maker Canada Goose Holdings plunged 22.5% after its quarterly revenue fell shy of forecasts. The company also warned investors of slower growth ahead.
The company, known for its expensive, goose feather-stuffed parkas and jackets, expects 20% revenue growth this fiscal year. That falls short of Wall Street’s forecasts.
The company has been opening up its own shops over the last several years, a change from its previous practice of selling through other retailers. In addition to giving the weak forecast, Canada Goose also said it plans on opening up more of its own stores.