NEW YORK, May 29 (Xinhua) -- U.S. stocks opened lower on Wednesday as investors grew increasingly concerned about U.S. economic prospects, due to sharp declines in U.S. long-term government debt yields amid U.S.-China trade tensions.
Shortly after the opening bell, the Dow Jones Industrial Average fell 204.61 points, or 0.81 percent, to 25,143.16. The S&P 500 was down 19.37 points, or 0.69 percent, to 2,783.02. The Nasdaq Composite Index decreased 57.88 points, or 0.76 percent, to 7,549.47.
Ten of the 11 primary S&P 500 sectors traded lower around early morning sessions, with the consumer staples sector down nearly 1.8 percent, leading the laggards.
Shares of Abercrombie & Fitch plummeted over 21.2 percent, as the U.S. apparel retailer reported that its first-quarter profit suffered losses and the quarterly revenue fell short of analysts' estimates.
Shares of Canada Goose also tumbled nearly 22 percent, as the Canadian outerwear producer posted weaker-than-expected revenue for the first quarter. Its yearly outlook also came shy of market expectations.
Yields of U.S. 10-year and five-year U.S. government bonds pulled back to 2.224 percent and 2.02 percent respectively on Wednesday morning, sinking below the 2.36 percent of three-month bond yield.
The readings has once again created a so-called inverted yield curve, which historically signals an economic recession. This time, the inversion marked the deepest one in almost 12 years.