Global stocks moved sideways, pressured by the worsening U.S.-China trade war and signs of slowing global economic growth. Numerous central banks cut interest rates in a bid to counter the damaging effects of rising tariffs and declining manufacturing activity. Emerging markets stocks experienced the biggest losses, while U.S. and Japanese markets fared considerably better. Bond markets rallied.
Defensive stocks generally outpaced economically sensitive sectors, led by a strong rally among utilities and real estate companies. Consumer staples stocks also posted significant gains. Energy and basic materials stocks declined as investors fretted about the health of the global economy. Consumer discretionary and financial stocks were essentially flat.
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