US stocks tumble after Trump calls off summit with N. Korea
|Major US equity indices fell sharply during the opening hour of trade on Thursday as investors reacted to the resurfacing geopolitical tensions.
The US President Donald Trump called off a planned summit in Singapore with North Korean leader Kim Jong-Un. There were already signs that the planned meeting might eventually not happen due to the recent comments from Pyongyang officials.
The announcement comes after officials from the isolated nation expressed anger over the US demands to denuclearize and comments by their minister of foreign affairs that if the talks were called off, the US would face off in a “nuclear-to-nuclear showdown.”
The news triggered a fresh wave of global risk-aversion trade and faded some optimism led by Wednesday's dovish FOMC meeting minutes, wherein the central bank indicated that it won't be too aggressive in raising interest rates.
At the time of writing this report, the Dow Jones Industrial Average was off around 130 points at 24,756 and the broader S&P 500 Index fell nearly 13 points to 2,721. Meanwhile, tech-heavy Nasdaq Composite Index retreated by over 23-points back to 7,400 round figure mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.