Word that means "to make look like a bad thing/force"

There's always demonize

1. (American) To turn into a demon.
2. (American) To describe or represent as evil or diabolic.

Another good choice might be vilify. While it doesn't exactly mention it in the definition, I commonly hear it used to describe exactly what you're looking for.

1. to lower in estimation or importance
2. to utter slanderous and abusive statements against : defame

Edit:

I thought a little more about what you said about vilify, and how it doesn't really fit. It seems that the definition of villainize is closer to what you want.

1. To represent as a villain.

A phrase that comes to mind is cast an evil aura, but that is far from a single verb.

The term malign as an adjective has some of the qualities you are seeking to ascribe to the object

evil in nature, influence, or effect : injurious - the malign effects of illicit drugs

But the verb form has to do with speech, often untrue or unjustified

to utter injuriously misleading or false reports about : speak evil of

The word presaged comes to mind, though it is not a perfect fit for your sentence. It means foreshadowed as with an omen or warning or negative symbolism. If I were to recast your sentence, I'd probably say,

"By mentioning the axe, the author presaged its role in the coming tragedy."