Having largely held up as traders bought the trade war dips, stocks tumbled on Thursday along with just about every other risk asset.

What happened: A spate of weak manufacturing reports from around the globe and more trash talk from the U.S. and China may have finally broken the camel's back.

Stocks:

  • The S&P 500 closed more than 1% lower.
  • Asian stocks fell to a 4-month low.
  • Germany's DAX dropped 1.8% and Italian stocks were off more than 2%.
  • MSCI's gauge of stocks across the globe fell 1.3%.

"Now that it's become clear that the risks are out there, the (equity) market has to price them in," Michael O'Rourke, chief market strategist at JonesTrading, told Reuters' Herb Lash. "There should be more downside."

  • Currencies: The dollar strengthened to its highest since May 2017, but reversed course late in the day. The safe-haven Japanese yen rose 0.75%.
  • Commodities: The S&P GSCI Total Return, a popular commodity index, fell 3%, and oil had the worst day in 6 months, sinking more than 5%.
  • Bonds: Benchmark 10-year Treasury yields fell to their lowest since October 2017, 30-year yields hit their lowest in nearly a year and a half, and 2-year yields touched their weakest level since February 2018.

What to watch: The yield on 3-month bills rose above the 10-year note, again signaling an inversion the Fed calls the most accurate predictor of a recession.

  • Treasury yields from 2 years to 10 years are currently trading below the Federal Funds Rate.

Go deeper: The world can't afford a trade war right now

Go deeper

Uber to buy Postmates in $2.65 billion deal

Illustration: Sarah Grillo/Axios

Uber has agreed to acquire food delivery company Postmates for $2.65 billion in an all-stock deal, the companies announced Monday.

Why it matters: This is the latest merger for the food delivery space as the sector undergoes an ongoing market consolidation.

Analysts expect soaring stock market despite slashed earnings forecasts

Data: FactSet; Chart: Axios Visuals

Despite cutting expectations for companies' earnings by the most in history and revenue by the most since 2009, Wall Street analysts are getting increasingly bullish on the overall direction of the U.S. stock market.

What's happening: Equity analysts are expecting earnings in the second quarter to fall by 43.8% — the most since 2008's fourth quarter 69.1% decline.

Case growth outpacing testing in coronavirus hotspots

Data: The COVID Tracking Project. Note: Vermont and Hawaii were not included because they have fewer than 20 cases per day. Chart: Andrew Witherspoon/Axios

The United States' alarming rise in coronavirus cases isn't due to increased testing — particularly not where cases have grown fastest over the last month.

Why it matters: The U.S. doesn't yet know what it looks like when a pandemic rages on relatively unchecked after the health system has become overwhelmed. It may be about to find out.