U.S. stocks had their worst day of the year as the threat of less quantitative easing caused a ruckus across all markets. The only positive asset classes were volatility and the U.S. dollar. Everything else was essentially taken behind the barn to be shot. The S&P 500 fell 2.5% and NASDAQ 2.3%. All of May and June's gains are now erased. The VIX - a volatility index - rallied 23%. Most economic data was ignored as a series of macro trades caused by the rise in Treasury rates, and dollar rally dominated trading. The ten year Treasury yield jumped to 2.421%.
- Factory activity in the mid-Atlantic region rose to 12.5 in June, according to the Philadelphia Federal Reserve Bank, trumping expectations for a reading of minus 2. Any reading above zero indicates expansion in the region's manufacturing
- The National Association of Realtors said existing home sales in May rose 4.2% to an annual rate of 5.18 million, slightly better than expected.
- Jobless claims jumped 18,000 to a seasonally adjusted 354,000 last week, according to the Labor Department.
Crude oil dropped 2.2% to $95.40, gold was punished to the tune of 6.4% to $1286.20, while silver dropped 8.3% to $19.82.
British stocks fell 3.0%, German stocks 3.3%, and French stocks 3.7%.
Japan's Nikkei fell 1.7%, and China's Shanghai index 2.8%.
- HSBC said Thursday that its "flash" index of China's manufacturing purchasing managers' sentiment fell to a nine-month low of 48.3 in June, as new export orders dropped sharply and production contracted for the first time in eight months.