On Thursday (8/10/17) the Dow dropped more than 100 points as
investors worry over heightening tensions between the U.S. and North
Korea. North Korea on Thursday reported details for a missile strike
near the U.S. territory of Guam, increasing tensions with the United
States. The issues started following U.S. President Donald Trump on
Tuesday (8/8/17) warned North Korea that it would face “fire & fury”
if it threatened the U.S.
All the 11 major S&P indexed declined, with technology sector’s 0.62%
leading the decliners. During Thursday morning’s trading session, the
Dow dropped 85.43 points, or 0.39%, at 21,963.27, the S&P 500
dropped 10.31 points, or 0.42% at 2,463.71. The Nasdaq Composite
fell 37.30 points, or 0.59%, at 6,315.03.
“There seems to be a heightened fear of an escalation,” stated Andre
Bakhos, managing director at Janlyn Capital LLC.
With Japan and South Korea also warning North Korea, investors are
retreating to see what is happening before jumping back in, Bakhos
added. Safe-haven assets like gold were again in favor. Gold hit an
eight-week high of $1,278 an ounce amid the concerns.
Federal Reserve Bank of New York President William Dudley is set to
speak later in the day and his comments will be analyzed for any
indications regarding the future pace of interest rate hikes. Declining issues outnumbered advancers on the NYSE by 1,847 to 678. On the Nasdaq, 1,685 issues dropped and 615 increased backing decliners.
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