Global stocks, commodities and bond yields tumbled Tuesday, the starkest sign yet of investors betting tensions between the U.S. and China could escalate into a trade war.

Stocks had slid on trade worries repeatedly this year, only to bounce back as investors wagered the Trump administration’s rhetoric would prove more posturing than actual policy. The scale of the market’s pullback Tuesday exposed the vulnerability of those bets: showing investors reassessing their appetite for risk after doubting the willingness of the world’s two largest economies to pursue policies that could cause long-lasting economic damage.

The Dow Jones Industrial Average tumbled 1.1%, or 287.26 points, for its biggest one-day slide of the month, while the Shanghai Composite Index fell to its lowest level since mid-2016 and major indexes in Germany and France lost more than 1% apiece.

“Since the middle of 2016, we’ve all known this administration would take a harder line on trade, but I think for many of us the assumption was perhaps that the tough talk was just going to be a negotiating position,” said Ron Temple, head of U.S. equities and co-head of multiasset investing at Lazard Asset Management. “Now, what’s unnerving is that the trade dispute has broadened out well beyond China.”

Analysts and investors said there is still room for a compromise. But rising trade tensions come as optimism about the outlook for world-wide economic growth is waning and political risk is perceived to be rising once again around the globe.