Despite initial gains, Dow futures suffered a painful selloff as China yanked a key part of the phase one trade deal.

Chinese agriculture purchases are a crucial part of the Sino-American trade deal, throwing the entire deal into disarray.

It’s been a wild night for the futures market, coming off the back of a weekend of civil unrest across America.

While stocks have rallied in the face of ongoing domestic crises, analysts agree that China tensions could still blow a hole in this market.

The real risk here is stocks exposed to China… US stocks that have a lot of sales, where they sell to China, or China exposure in general have outperformed from the bottom so this is the real risk.

The White House has increasingly ramped up the rhetoric on China in recent weeks.

Last week, Mike Pompeo stoked tensions by declaring that Hong Kong was no longer politically autonomous from China.

That might sound like a small distinction, but it allows the White House to yank Hong Kong’s special trade status.

The stock market was heading for a positive open this morning before the China selloff at 4.40 am.

In Washington D.C., the White House went dark as protests turned violent.