Dow plummets 205pts as Trump inflames Korea tension

Share

US stocks rose Friday but still notched their biggest weekly loss in months, as investors were shaken by disappointing earnings results and an escalation of threats between the USA and North Korea.

"There's not a fundamental reason why what we're seeing out of North Korea right now should affect stock market prices, but it's being used as the reason to sell off right now because we've been looking for it for so long", Schiegoleit said.

Global markets have been on edge since Tuesday, when President Donald Trump warned North Korea of severe retribution should the authoritarian state proceed with any more missile tests or threats. The S&P 500 sank 1.7% from Tuesday to Thursday, the Dow fell 1.1%, and the Nasdaq dropped 2.4%.

If the North Korean regime "does anything" to the USA or a USA ally "things will happen to them like they never thought possible", he told reporters on Thursday, according to Bloomberg.

Macy's shares closed down 10.2 per cent and Kohl's fell nearly 6 per cent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off. The VIX, a measure of how much volatility investors expect, jumped to its highest level since May.

At 10:57 a.m. ET (1457 GMT), the Dow Jones Industrial Average was up 54.38 points, or 0.25 percent, at 21,898.39, the S&P 500 was up 8.69 points, or 0.35 percent, at 2,446.90. Rival Advanced Micro Devices was also down 2.6 percent.

The stock fell $2.04 to $20.99. On the Nasdaq, 1 378 issues rose and 892 fell. Dillard's slumped 13.8 per cent after the chain booked a loss for the second quarter as increased inventory led to big discounts.

More news: Redskins OLB Trent Murphy tears ACL

Nvidia's quarterly revenue in its data center and automotive businesses missed estimates, dragging the chipmaker's shares down 5.43 percent.

The dollar pulled back against the euro and other currencies after the Consumer Price Index rose a tame 0.1 percent in July. Chinese blue chips closed flat but Hong Kong's Hang Seng fell 0.4 per cent.

The yield on the benchmark 10-year Treasury note settled at 2.191%, its lowest close since June 26, compared with 2.211% Thursday and 2.269% last Friday.

In Europe, equities dived with London losing 0.6 percent, while Frankfurt shed 1.1 percent and Paris fell 1.4 percent.

On the currency front, the USA dollar is trading at 108.82 yen compared to the 109.20 yen it fetched at the close of NY trading on Thursday.

When Japanese traders get back to their desks Monday, stocks will need to catch up with Friday's regional weakness and the yen's recent gains against the dollar, up 1.5% on the week. South Korea's KOSPI fell 1.8 percent to almost a three-month low.

The index was also dragged lower after Beijing ordered probes into three major Chinese social networking platforms over outlawed content.

Share