S&P falls 1.4 percent in safety flight on North Korea tensions
13 August, 2017, 13:22
The Standard & Poor's 500 index fell 10 points, or 0.4 percent, to 2,463.
The Nasdaq Composite Index climbed 39.68 points, or 0.6%, to close at 6,256.56.
The only diplomatic outcome that may now satisfy the U.S.is if North Korea abandons its nuclear ambitions, he wrote. "I think a few investors are in the process of surrender", one can read in a text to The canadian Press. Is that a reason to be?
Wall Street declined on Thursday, with the S&P 500 registering its first daily drop of more than 1% in nearly three months, as investors grew cautious over escalating tensions between the USA and North Korea. The move added to escalating U.S.
Still, the S&P and the Dow were on track to post their biggest weekly loss in about five months and the Nasdaq on course to post its biggest weekly fall in about six weeks. Amazon shares finished down 2.6%.
Unease over the situation pushed the VIX, a measure of how much volatility investors expect in stocks, up 44.4 percent. The Treasury yield us 10-year fell to 2,201 % vs. 2,248 % Wednesday night and one of the warrants to 30 years 2,778 %, compared with 2,824 %.
Minneapolis Fed President Neel Kashkari, who has advocated for the Fed to halt interest rate hikes until inflation picks up gain, on Friday said his colleagues are telling each other "a ghost story (http://www.marketwatch.com/story/feds-kashkari-says-central-banks-hawks-are-spooked-by-ghost-story-of-higher-wages-2017-08-11)" about higher wage inflation that scared them into raising short-term rates.
This morning global stocks declined for the second day in a row, with the FTSE 100 falling 0.8 per cent to 7,327 points in early trading, while the Dax fell 0.2 per cent and the Cac 40 fell 0.6 per cent. Economists had expected prices to rise by 0.2 percent.
Nvidia Corp.(NVDA) shares fell 5.3%, even after the chip maker posted upbeat earnings late Thursday.
In contrast to the USA market, global equities remained weak. Hong Kong's Hang Seng Index plunged by 2%, while South Korea's Kospi Index slumped by 1.7%.
"If the US and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so", the editorial's authors said. "When earnings are not beating expectations there's a sell off in the companies, and we're just not seeing that money reinvested because of the geopolitical risks". Oil prices were headed higher.