Need to Know: Why the S&P 500 needs to hold this key level or risk plunging 10%

Have we seen the worst of the great yield-inversion crisis of 2019?

On the heels of a largely drama-free session, there’s an appetite for risk in the air for Tuesday, with stock futures higher, though that inversion of 10-year Treasury note TMUBMUSD10Y, +1.62% and 3-month T-bills yields is still sticking. Recent market action has certainly schooled plenty where that subject is concerned.

As a recap, last week’s equity selloff was by the inversion of the yield curve—an unusual condition that occurs when short-dated rates of government debt rise above their longer-term counterparts. Such inversions have accurately predicted recessions in the past.

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