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During the night on Wall Street, the Dow Jones Industrial Average slipped 32.14 points to close at 25,625.59 and the S & P 500 lost 0.5% to finish at 2,805.37. Nasdaq Composite closed down 0.6% to 7,643.38.
The declines came as the 10-year benchmark rate reached its lowest level since December 15, 2017. It was at 2.3559% after reaching levels above 2.4% yesterday.
Investors keep an eye on rates after the 10-year fall from the first week since 2007 under the 3-month mark. This is an evolution that investors call a reverse yield curve and is considered an early indicator of a recession.
"The reason it's so specific is that when short-term rates exceed long-term rates, it tells us that investors are worried about short-term economic prospects and want more compensation for locking in their money. this period, "Kathy Lien, managing director of BK Asset Management's foreign exchange strategy, wrote in a note overnight.
"Investors have a hard time deciding whether falling yields are positive or negative for stocks," Lien said. "On the one hand, the lowest rates are interesting for borrowing, but on the other hand, the yield curve is reversed as a result of lower rates of interest." 39; interest. "
On the US-China trade front, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to resume talks with their Chinese counterparts in Beijing on Thursday with the aim of reaching a trade deal.
Before the meeting, Reuters announced that the Chinese side had made unprecedented proposals on issues such as the forced transfer of technology, citing US officials.
"I think this time … the context is different," said Chou Chong, head of Asian equities at Ostrum Asset Management Asia, in "Street Signs." "The bag of mischief or what you call the easy-to-obtain fruits of China – world trade, people who buy more goods – that's a bit short."
The US dollar index, which compares the greenback to a basket of peers, stood at 96.873 after peaking at 96.976.
The Japanese yen traded at 110.17 against a dollar after recording lows around 110.6 in the previous session. The Australian dollar has changed hands at 0.7095 dollar after a sharp decline against the dollar yesterday to 0.714 dollar.
Oil prices fell in the morning of Asian trading hours, the Brent international benchmark futures contract fell 0.15% to $ 67.73 a barrel and US futures contracts fell from 0.34% to 59.21 dollars a barrel.
– Fred Imbert of Reuters and CNBC contributed to this report.
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