Mixed market signals pose a conundrum for investors

INVESTORS are trying to determine whether recent contradictory signals on U.S. growth mark the start of a prolonged slowdown or another speed bump in the 10-year economic expansion.

For many who have ridden stocks to near records, it feels like a turning point is close. Signals of slowing growth or even recession have mounted: The latest came last week, when data showed steep declines in the U.S. manufacturing and service sectors. Other investors point to the rise of short-term Treasury yields above longer-term ones, a phenomenon known as an inverted yield curve that typically precedes recessions.