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Dow slides more than 250 points as fears of global slowdown persist, Nike falls

These data sent the German 10-year bund yield to their lowest level since 2016, briefly dipping into negative territory.

In the U.S., the spread between the 3-month Treasury bill yield and the 10-year note rate turned negative for the first time since 2007 — thus inverting the so-called yield curve — according to Refinitiv Tradeweb data. An inverted yield curve happens when short- term rates surpass their longer-term counterparts. This is considered a trustworthy indicator of a recession coming in the near future.

These moves come after U.S. central bank surprised investors by adopting a sharp dovish stance on Wednesday, projecting no further interest rate hikes this year and ending its balance sheet roll-offs.

Market sentiment was boosted by the Fed’s updated outlook on interest rates, but the reasons behind it caused some concern.

Stocks were on track to post solid gains for the week through Thursday’s close as sharp increases in the tech and consumer discretionary sectors curbed lingering worries over U.S.-China trade talks.

A U.S. trade delegation, headed by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, will visit China for a two-day meeting at the end of next week. Chinese Vice Premier Liu He is then expected to travel to Washington in early April.

President Donald Trump said in an interview that aired Friday that talks were going well. However, he also said tariffs on Chinese goods would only come off once China complied with the agreed upon trade deal.

The long-running trade dispute between the world’s two largest economies has battered financial markets in recent months, souring business and consumer sentiment.

—CNBC’s Sam Meredith contributed to this report.

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