U.S. stocks fell more than 3 percent Tuesday, the biggest drop since the October rout, as investors worried about a bond-market phenomenon signaling a possible economic slowdown. Lingering worries about U.S.-China trade also added to nervousness on Wall Street and hurt trade-sensitive industrials like Caterpillar and Boeing. The yield on the three-year Treasury note surpassed its five-year counterpart on Monday. When a so-called yield curve inversion happens—short-term yields trading above longer-term rates—a recession could follow, though it often is years away. Trading volume in U.S. stocks was higher than usual Tuesday as investors dumped stocks for bonds. The U.S. dollar fell broadly versus a basket of other currencies, as U.S. Treasury yields dropped, feeding worries that the Federal Reserve (Fed) could pause its interest-rate raising cycle, while an inversion in part of the yield curve was interpreted as a warning of a potential recession. Gold rose to a more than five-week high as the dollar declined, with futures gaining 0.6 percent to $1,246.60 an ounce. Also on the New York Mercantile Exchange, palladium jumped to a record high, fueled by speculative interest and tight supplies of the auto-catalyst metal, briefly surpassing gold. The Dow Jones industrial average fell 799.36, or 3.1 percent, to 25,027.07. All 30 components fell, led by industrials Caterpillar and Boeing, which plunged 6.9 and 4.85 percent, respectively. Intel, Dow DuPont, J.P. Morgan Chase, Apple, and Visa each lost between 4.75 and 4.4 percent. The broader Standard & Poor's 500 index fell 90.31, or 3.2 percent, to 2,700.06, closing below its 200-day average. Financials led 10 declining sectors as bank shares dropped sharply, and utilities—seen as a safe-haven investment—were the only advancing sector. The technology-heavy Nasdaq composite index fell 283.09, or 3.8 percent, to 7,158.43. Amazon plunged 5.9 percent, Netflix dropped 5.2 percent, Google-parent Alphabet lost 4.8 percent, Apple fell 4.4 percent, and Facebook declined 2.2 percent. Together, the so-called FAANG stocks lost $140 billion in market value Tuesday, dropping back into correction territory.