Stocks have come some of the way back. US stocks opened deep in negative territory while bond yields are tumbling all around the world as the US 10-year yield fell as low as 1.86%. The Dow was down 386 points, the S&P 500 was down 30 points, and the Nasdaq was down 75 points. With Wednesday's early drop, the S&P 500 turned negative for the year. The Dow is now down about 90 points, while the S&P 500 is down 17 points while the Nasdaq is still down 60 points. The drop in US stocks follows a sharp sell off in European stocks. Italy's FTSE MIB is down 2.8%, Germany's DAX is down 2.0%, Britain's FTSE 100 is down 1.5%, and France's CAC 40 is down 2.2%. Greece is down a whopping 9%. Meanwhile, global bonds are surging, with the 10-year Treasury yield falling below 2% for the first time since June 2013, calling to as low as 1.86%. Here's the chart showing the remarkable drop in US 10-year yields over the last six months. Bonds in Europe are also sinking, with the German 10-year bund falling to 0.75%. WTI crude oil prices fell below $81 per barrel earlier on Wednesday in what appears to be concerns over falling demand due to a slowing global economy. "Crude oil markets have moved rapidly into surplus, not because of the growth in new production from the US and other, but equally importantly because of the rapid collapse of demand," Citi's Ed Morse said. "As a result, there is an emerging surplus that should weigh heavily on prices through next year." Big oil producers like ExxonMobil and Chevron have been getting slammed while big drillers like Nabors and Transocean are down by over 30%.SEE ALSO: Huge Economic Data Misses Join the conversation about this story »
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