US STOCKS-Wall Street slides as recession fears grow

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* U.S. Treasury bond curve inverts for 1st time since 2007
* Macy's slides after FY outlook cut; weighs on rivals
* Rate-sensitive banks slump
* Indexes down: Dow 1.55%, S&P 1.52%, Nasdaq 1.76%

(Updates to open)
By Medha Singh
Aug 14 (Reuters) - Wall Street main indexes slid 1.5% on
Wednesday, as a closely watched U.S. bond market indicator
pointed to a renewed risk of recession following poor economic
data from Germany and China.
Yields on the two-year Treasury notes rose above the 10-year
yield for the first time since 2007, a metric widely viewed as a
classic recession signal. US/
The interest-rate sensitive bank index .SPXBK slipped
2.50% and the broader financial sector .SPSY fell 1.95% in
response.
Slumping exports sent Germany's economy into reverse in the
second quarter, while Chinese industrial output growth cooled to
a more than 17-year low in July, putting the focus back on a
bruising U.S.-China trade war and its impact on global growth.
The downbeat mood followed a rally in Wall Street's main
indexes on Tuesday thanks to the Trump administration's decision
to delay tariffs on some Chinese imports. "It's almost as if global investors either don't buy the
tariff delay as a sign of real progress in the U.S.-China trade
war or have been too consumed by further evidence of global
economic weakness to care," BMO Capital Markets strategist
Stephen Gallo said.
At 9:52 a.m. ET, the Dow Jones Industrial Average .DJI was
down 406.73 points, or 1.55%, at 25,873.18, the S&P 500 .SPX
was down 44.61 points, or 1.52%, at 2,881.71. The Nasdaq
Composite .IXIC was down 140.86 points, or 1.76%, at 7,875.50.
The high-growth technology sector .SPLRCT was the hardest
hit. Shares of Apple Inc AAPL.O were down 1.74% after boosting
markets a day earlier with a 4% rise.
Chipmakers were also down, with the Philadelphia chip index
.SOX slumping 2.09%.
The biggest decliner on the S&P 500 index was Macy's Inc
M.N , down 17.2%, after the department store operator cut its
full-year profit forecast as it discounted heavily to clear
excess spring season inventory. Rivals Target Corp TGT.N and Nordstrom Inc JWN.N slipped
3.4% and 9.8%, respectively.
Declining issues outnumbered advancers for a 5.40-to-1 ratio
on the NYSE and for a 5.99-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and 35 new
lows, while the Nasdaq recorded eight new highs and 126 new
lows.