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.


  • 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

Dion Rabouin, author of Markets
47 mins ago - Economy & Business

Coronavirus surge is sinking consumer confidence

Data: Hamilton Place Strategies, CivicScience; Chart: Axios Visuals

The rise in coronavirus cases in certain parts of the U.S. is stunting confidence across the country, a crop of new reports show.

Driving the news: After stalling during the previous two-week period, overall economic sentiment declined for the first time in two months, according to the Economic Sentiment Index, a biweekly survey from data firm CivicScience and Hamilton Place Strategies (HPS).

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Obama: Trump is "jealous of COVID's media coverage."
  2. Health: Mask mandates help control the rise in coronavirus hospitalizations. Hospitals face a crush.
  3. Business: Coronavirus testing is a windfall. Winter threat spurs new surge of startup activity.
  4. Media: Pandemic causes TV providers to lose the most subscribers ever.
  5. World: Putin mandates face masks.

The GOP's monstrous math problem

Illustration: Sarah Grillo/Axios

Republicans, win or lose next week, face a big — and growing — math problem.

The state of play: They're relying almost exclusively on a shrinking demographic (white men), living in shrinking areas (small, rural towns), creating a reliance on people with shrinking incomes (white workers without college degrees) to survive.