NEW YORK (AP) — The latest on developments in financial markets (all times local):

9:53 a.m.

Stocks are opening sharply lower on Wall Street following big losses in Europe after German's economy shrank in the second quarter and as the U.S. bond market flashed a warning about a possible recession.

The Dow Jones Industrial Average was down as much as 400 points early Wednesday.

U.S. government bond prices continued to soar as investors sought safety, briefly pushing a key yield below a threshold that has correctly predicted recessions in the past.

The Dow fell 388 points, or 1.5%, to 25,894.

The S&P 500 lost 39 points, or 1.3%, to 2,887. The Nasdaq lost 1.5% to 7,894.

The yield on 10-year Treasury briefly fell below the yield on the 2-year note, which has correctly predicted previous U.S. recessions.

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