Wall Street closes with heavy losses as investors seek refuge
|Major equity indexes in the U.S. recorded large losses on Thursday as investor moved away from riskier assets amid rising geopolitical tensions between the United States and North Korea.
Commenting on today's market action, "markets are looking for any reason at all for a reset. That reset is being triggered by North Korea geopolitical concern and stretched valuations," Peter Kenny, senior market strategist at Global Markets Advisory Group, New York, told Reuters.
The Chicago Board Options Exchange (CBOE) Volatility Index .VIX, which measures the expected near-term stock market volatility, surged to a fresh 3-month high at 16.06 on Thursday. The S&P 500 recorded its biggest drop since mid-May and closed the day at 2,437.75, down 1.47%. In addition to the low risk appetite, disappointing quarterly sales report from department stores Macy's and Kohl's dragged their shares lower 9.5% and 7% respectively. The Dow Jones Industrial Average lost 104.69 points, or 0.93%, to 21,884.01 while the Nasdaq Composite fell 35.46 points, or 2.13%, to 6,216.87.
Headlines from the U.S. session:
- US Pres. Trump: Maybe 'fire and fury' statement wasn't 'strong enough' - AP
- US Pres. Trump appoints Neil Chatterjee as Chair of Federal Energy Regulatory Commission
- CIA agrees North Korea can fit nuclear weapon on missile - NBC
- Fed's Dudley: Weak dollar should help boost import prices, help push up inflation
- US: Despite soft PPI, fundamentals point to firm inflation ahead - Wells Fargo
- Fed's Dudley: Modest wage growth reflects sluggish productivity
- OPEC boosts demand outlook for its oil as fuel use strengthens - Bloomberg
- US: Producer price inflation suggests lack of pipeline price pressures - ING
- US: PPI for final demand falls 0.1% in July; services decrease 0.2%, goods decline 0.1%
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.