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stock market: Check out 5 things investors need to know about an inverted yield curve However, history shows that an inversion, while not an upbeat sign about the coming state of the economy, doesn't necessarily translate to a lasting selloff in equity markets, according to Market Watch. The durability of the stock market might be a point lost on investors Wednesday afternoon. The U.S. 2-year Treasury note yield TMUBMUSD02Y, 2.99% briefly traded above the 10-year Treasury note yield TMUBMUSD10Y, 3.31% for the first time in over a decade see chart . Caption outside of wrapper for normal article images The so-called inversion of the main measure of the yield curve, or a negative spread between short-term and long-term yields, has preceded the last seven recessions. Currently, the Dow Jones Industrial Average DJIA, 1.20%, the S&P 500 SPX, 1.44% and the Nasdaq Composite COMP, 1.67% indexes are trading at least 2.7% lower on Wednesday. Caption outside of wrapper for normal article images On average, the S&P 500 has returned 2.5% after a yield-curve inversion in the three months after the episode, while it has gained 4.87% in the following six months, 13.48% a year after, 14.73% in the following two years, and 16.41% three years out, according to Dow Jones Market Data see table below Date of first 2/10-year inversion3 months later6 months later1 year2 years3 Read These stocks are falling the most as Treasury yield curve inverts Data from LPL Financial also corroborate the tendency for markets to punch higher in the long term. But over the longer stretch stocks have tended to rise firmly following the closely watched recession alarm. (news.financializer.com). As reported in the news.