The yield of long-term US Treasury bonds declined sharply amid a crash in the global stock market. To make the situation even worse, possible repercussions of a trade conflict between the United States and China fuel investors’ concerns.

The yield of 10-year bonds declined to 2.58%, hitting the year’s lowest level.

Apple is going through tough times. After the company’s management reported about a fall in revenue in the last quarter of 2018, investors fled to sell their shares and buy the US Treasuries instead. Consequently, the bonds’ price rose which led to a fall in yields. At the same time, the S&P 500 plummeted by 1.9%.

Apple experts connect contraction in revenue with the ongoing situation in the developing markets and in China in particular. Investors fear that the US-China trade war could have an adverse effect on the corporate earnings. The fears intensified after White House Economic Adviser Kevin Hassett said that most American companies are expected to slash their profits until Washington and Beijing sign a trade agreement.