About 15 minutes into trading, the Dow Jones Industrial Average had dropped to 21,947.15, down 0.5 percent from Wednesday’s close, falling back below the 22,000 mark it first broke through on August 2. The Nasdaq composite lost 99 points, or 1.6 percent, to 6,252.
Wall Street rebounded on Friday and ended on a good note in a hard week marked by increasing geopolitical tensions: the Dow Jones has taken 0.1% and the Nasdaq up 0.6 per cent. “And while risks remain elevated from a geopolitical perspective, valuations are not necessarily excessive, though full”. They estimated it at 42 % before the publication of the figure for inflation.
Investors said the rhetoric may have sparked some selling, but it wasn’t exclusively to blame for the sharp fall. Is that a reason to be?
Wall Street got off to a downbeat start early Thursday as tensions between the USA and North Korea continued to escalate, rattling markets overseas.
North Korea’s threat to carry out a missile strike on Guam continued to worry investors.
Nvidia Corp. fell $7.37, or 4.3 percent, to $164.74, while Advanced Micro Devices Inc. gave up 71 cents, or 5.5 percent, to $12.12. The S&P is looking at a decline of 1.3%, its worst week since March. The Nasdaq has, him, down 1.5 %. Financial companies and department store operators were among the big decliners. Both the Nasdaq and the Russell are set for their third straight weekly decline.
TECH SLIDE: Losses among technology stocks led the market slide.
Six of the S&P 500 sectors ended higher. They outweighed gains in health care stocks and elsewhere.
Outside the political arena, declines in a pair of technology stocks added to the cautious tone on the day.
Smaller-company stocks also fell sharply.
In other corporate news, shares of Snapchat parent Snap fell 13% after it reported earnings late Thursday that missed analyst forecasts. Some say expectations for its server-chip business were just too high (http://www.marketwatch.com/story/nvidia-stock-could-pause-as-server-growth-slows-down-2017-08-10).
The latest sell-off was the most severe yet, amounting to the biggest single-day drop for the stock market in almost three months.
In contrast to the US market, global equities remained weak.
The CBOE Volatility Index – a measure of investors’ expectations for swings in the S&P 500 over the next 30 days – surged 44% to 16.04 Thursday – its highest level since U.S. Election Day.
North Korea responded with a statement by its official KCNA news agency claiming Trump is “driving” the Korean peninsula to the “brink of a nuclear war”.
United States stocks have been in retreat since President Donald Trump Tuesday issued a fiery warning to North Korea to halt its nuclear program. The price of the precious metal – which is considered a safe haven during periods of uncertainty – advanced Friday, from 3.90 to United States $1294 USA $at the Exchange of the commodities of NY.