Stock markets are often accused of living in an alternate reality, but to analyze the trade war with China you have to accept the truth: Stock markets make their own reality. For the past two weeks that reality has been pretty unpleasant. Three-quarters of stocks in the S&P 500 as well as 95% of stocks in Goldman Sachs’s high China exposure list are down since President Trump made clear in tweets earlier this month that the trade war was back on. Bond yields have also tumbled.

Source: Wall Street Journal May 16, 2019 17:37 UTC