By CCN.com: The Dow Jones enjoyed a brighter start on Thursday after some generally positive macro data initially lifted stock markets.

The Dow ran into a brick wall, however, as the 200-day moving average immediately provided stern resistance – and prevented the index from recouping more than a minor portion of its losses from the previous session.

After the 800 point sell-off on Wednesday, investors appear deeply cautious about the renewed focus on the US-China trade war, with the 30-year US Treasury yield offering less than 2% for the first time in history.

Dow Jones Seesaws Between Triple-Digit Gains & Losses

As of 12:18 pm ET, the Dow Jones Industrial Average had gained 113.93 points or 0.45%. The Dow currently stands at 25,593.35 after dipping into the red earlier in the day.

Plunging yields continue to be a significant focus for traders, with potential for a global recession dominating headlines around the world. The Dow Jones is a critical indicator of global risk appetite, so it is no surprise that today’s rally stalled.

Positive data in the US and UK did demonstrate that the consumer continues to be in good health, but investors are struggling to see this holding up in a radically deteriorating macro environment.

The prospects of a German recession and an escalation in the US-China trade war is hanging heavy over stock bulls desperate to buy this dip.

Hardening Chinese Rhetoric Hits Stock Markets

Boris Schlossberg, Managing Director at BK Asset Management, released a note on Thursday suggesting that the primary cause of the reversal in stocks was a harsh tone out of China this morning,

“The tough rhetoric from China which noted that Trump broke the Osaka agreement and that the US would face retaliatory measures if 10% tariffs went into effect indicates that China is no longer willing to be conciliatory in its tone and that quickly dissipated any positive vibe the markets were feeling this morning. Still, with global economic data continuing to hold up and with central banks continuing to ease the economic background is far less dire than the price action seems to suggest.”

Dow Jones Stocks: Cisco Collapses, Walmart Soars

The picture for the major Dow stocks was mixed across the board heading towards the early afternoon, with one exception.

A massive 7.4% drop in Cisco (CSCO) after miserable earnings was especially meaningful given the CEO’s communication that Chinese sales, in particular, were down. Worryingly, Mr. Robbins also commented that government-controlled former clients were now shunning them in China.

Coca-Cola was performing well again in defensive trade, up 1.8%. Walmart was the obvious leader, however, carrying the Dow Jones on its back with a 4.3% gain after it posted strong sales figures and boosted forward guidance.

Click here for a real-time Dow Jones Industrial Average chart.